Deutsche Börse is set to release a new 'behaviour-oriented' equity index based on the Neuer Market – made up of 325 mainly German technology and high-growth companies – as a market information tool for dealers.The Neuer Market Sentiment Index is designed to track the level of optimism on the Neuer Market through regular surveys of market participants. Deutsche Börse will ask 140 institutional investors and 160 retail investors their opinion on the Neuer once per week, using the aggregated information to update the Sentiment Index. The Index is still in the testing stage, but should be available on the Deutsche Börse website within the next few days, a spokeswoman for the exchange said.
A spokesman for Swiss-German derivatives exchange Eurex, which is partly owned by Deutsche Börse, said equity options and equity index options traders could use the index as a decision-making aid when setting hedging strategies.
Jason Good, head of equity derivatives sales at Deutsche Bank in London, said he would most likely use the Sentiment Index as a volatility indicator. “If the index shows that there’s a lot of mixed sentiment in the market, then volatilities will probably increase,” said Good
More on Exchanges
NYXBT will initially be based off data from Coinbase Exchange.
German exchange group signs joint venture deal with CFFEX and Shanghai Stock Exchange
A mostly positive mix of Q1 results also yield big increases in data revenues for some exchanges.
Volumes jump following revamp of Sydney bourse's clearing incentive scheme
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.