Index funds may soon be listed on FSE

The Frankfurt Stock Exchange has set up a new segment for index-based investment products, introducing the possibility of a public listing for unregistered funds. Following approaches from several major investment fund managers and banks, the FSE has created a high-quality market segment for index-linked products called the Index Market. At present, many index-linked funds are automatically disqualified from the Ucits scheme because of the 5/10/40 rule that limits the weighting in a fund. The majority of indices are dominated by a small number of stocks and those indices cannot therefore b...