Data Explorers and Nasdaq launch optimised index
05 May 2011 New York
Image: Shutterstock
The NASDAQ OMX Group and Data Explorers have launched the NASDAQ-100 Data Explorers Optimised Index (NASDAQ:NDXOPT).
The new index is an optimised version of the NASDAQ-100 Index, comprised of 100 of the world’s largest, most dynamic non-financial companies. The NASDAQ-100 Data Explorers Optimised Index offers a tradable benchmark that will enhance liquidity and protect both the long and short investor.
The new index is unique because it screens out stocks that are either lacking in liquidity or relatively expensive to borrow in the stock lending market based on analytics from Data Explorers.
The optimised version of the NASDAQ-100 Index retains the return and volatility characteristics of the original index, with enhanced liquidity to support both the long and short sides of the trade. The chart below shows the close relationship between the NASDAQ-100 Data Explorers Optimised Index and the NASDAQ-100 Index.
John Jacobs, NASDAQ OMX executive vice president commented: “The launch of the NASDAQ-100 Data Explorers Optimised Index offers investors the liquidity of the NASDAQ-100 Index components but with extra measures of liquidity. The inclusion of information from Data Explorers, the world’s premier provider of stock loan data, reflects our constant innovation to improve the usability and effectiveness of our indexes.”
The constituents of the NASDAQ-100 Index are screened quarterly using methodology created by Data Explorers to identify stocks that are either lacking in liquidity or relatively expensive to borrow. The company analyses daily stock lending and short interest information covering more than 3 million daily transactions, collected from the world’s leading investment banks, prime brokers, lending agents, beneficial owners and hedge funds. Prior to the launch, the NASDAQ-100 Data Explorers Optimised Index screened out 18 stocks per the index methodology.
Donal Smith, CEO, Data Explorers added: “We believe the application of our screening methodology to the NASDAQ-100 Data Explorers Optimised Index will help investors improve liquidity and manage risk. We are confident this new index will become a model for the construction of other new indices and the basis of exchange-traded products.”
The NASDAQ-100 Index is the initial index universe for the NASDAQ Data Explorers Optimised series. Over the coming months, NASDAQ OMX and Data Explorers will launch additional indexes based on the optimised methodology.
The new index is an optimised version of the NASDAQ-100 Index, comprised of 100 of the world’s largest, most dynamic non-financial companies. The NASDAQ-100 Data Explorers Optimised Index offers a tradable benchmark that will enhance liquidity and protect both the long and short investor.
The new index is unique because it screens out stocks that are either lacking in liquidity or relatively expensive to borrow in the stock lending market based on analytics from Data Explorers.
The optimised version of the NASDAQ-100 Index retains the return and volatility characteristics of the original index, with enhanced liquidity to support both the long and short sides of the trade. The chart below shows the close relationship between the NASDAQ-100 Data Explorers Optimised Index and the NASDAQ-100 Index.
John Jacobs, NASDAQ OMX executive vice president commented: “The launch of the NASDAQ-100 Data Explorers Optimised Index offers investors the liquidity of the NASDAQ-100 Index components but with extra measures of liquidity. The inclusion of information from Data Explorers, the world’s premier provider of stock loan data, reflects our constant innovation to improve the usability and effectiveness of our indexes.”
The constituents of the NASDAQ-100 Index are screened quarterly using methodology created by Data Explorers to identify stocks that are either lacking in liquidity or relatively expensive to borrow. The company analyses daily stock lending and short interest information covering more than 3 million daily transactions, collected from the world’s leading investment banks, prime brokers, lending agents, beneficial owners and hedge funds. Prior to the launch, the NASDAQ-100 Data Explorers Optimised Index screened out 18 stocks per the index methodology.
Donal Smith, CEO, Data Explorers added: “We believe the application of our screening methodology to the NASDAQ-100 Data Explorers Optimised Index will help investors improve liquidity and manage risk. We are confident this new index will become a model for the construction of other new indices and the basis of exchange-traded products.”
The NASDAQ-100 Index is the initial index universe for the NASDAQ Data Explorers Optimised series. Over the coming months, NASDAQ OMX and Data Explorers will launch additional indexes based on the optimised methodology.
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