Deutsche Börse scheduled the launch of XTF Exchange Traded Funds, a new market segment for exchange-traded index funds, for April 11. Several products referring to the STOXX indexes will be listed for the launch. Deutsche Börse will thus be the first stock exchange in Europe to initiate trading in exchange-traded index funds in a segment of their own. The exchange is not an issuer itself but is making an attractive framework available with the necessary data in a new market segment. Deutsche Börse is a partner and cofounder with Dow Jones & Co. in STOXX Ltd., a joint venture to provide indexes and index services to the European market.
The funds are quoted continuously on Xetra and in broker-supported trading. The price of one share corresponds to a fraction of the index value set by the issuer. At least two Designated Sponsors will provide for sufficient liquidity on Xetra for each index fund. The fund composition is adjusted daily to correspond properly to the index weightings and tracks the performance of the underlying index.
To make the new segment as transparent as possible, Deutsche Börse is making data on the current value of the fund, the so-called net asset value and the index trend, available to information service providers and financial institutions. Substantial, up-to-date information will be available via the Deutsche Börse Web site www.exchange.de, and additional information at www.media-relations.exchange.de.