Russell Indexes, a leading global index provider and NYSE Euronext, one of the world’s premier exchange operators and technology innovators, have announced a multi-asset global alliance.
By accessing NYSE Euronext’s diverse geographical footprint, proprietary SFTI network and liquid customer base, Russell can unlock their potential by reaching new clients anywhere in the world with greater ease, performance and reliability while allowing customers to efficiently gain exposure to key Russell Indexes and data.
NYSE Liffe has been working with Russell Indexes on the development of futures based on the Russell UK Mid 150 Index. The Russell UK Mid 150 Index comes in response to investor demand for a more tradable and cost-effective solution to gain exposure to UK small- and mid-cap stocks.
The Russell UK Mid 150 Index is made up of 150 stocks across the mid/cap universe that are traded on UK stock exchanges and denominated in sterling.
Russell Indexes announced that Russell Index options will trade on NYSE Amex and Arca Options in a semi-exclusive, dual-listing strategy.
The new focused alignment leverages the unique strengths of the NYSE U.S. options platforms, providing the potential for increased support and education around Russell Indexes’ five listed options. Russell believes that this focus will enable the organizations to achieve greater economies of scale, more focused product and service capabilities, and enhanced educational resources to benefit investors and traders. Options on the well-known Russell 2000® Index of small-cap U.S. stocks (RUT) were previously listed on several U.S. exchanges.
The new agreement also increases the potential to expand the Russell product. NYSE U.S. Options has already committed to develop new options products with Russell Indexes.
In 2013, NYSE Amex Options and NYSE Arca Options have seen considerable growth in Russell 2000® Index options (RUT) volume. You can read more about that here.
On 1 October 2012 NYSE Liffe and Russell Indexes partnered to launch Russell Europe SMID 300 index futures on Bclear.
This partnership reflects NYSE Liffe’s objective to launch customer led, innovative products for Bclear and reflects Russell Indexes’ objective to increase its competitiveness as a leading player in the European equity derivatives space. The Russell Europe SMID 300 index futures contract is the vehicle through which we can achieve these objectives together.
From the outset, one of the Russell Index Group’s major goals was to expand the global distribution of RussellTick, a successful index product in the US.
Russell needed a go to market partner that would help them grow their business, especially in Europe, through distribution and joint sales efforts. Russell is taking advantage of NYSE Technologies’ large footprint in Europe via its SFTI network and it is able to seamlessly distribute RussellTick leveraging the Global Index Feed.
Both Russell and NYSE Technologies are now offering RussellTick as part of their product portfolios.
The Russell Index Group realized that NYSE Euronext had a powerful asset with its Global Liquidity Center in Mahwah, New Jersey.
By hosting its index engine in Mahwah in a fully managed environment, Russell is able to save costs and focus its resources on producing new products rather than worry about the maintenance of their infrastructure. NYSE Technologies is also managing Russell’s third party index calculation engine software stack.