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Dow Jones Ta kes Over TRAC-X High Yield Indexes
Dow Jones Indexes inked a deal with Morgan Stanley and JPMorgan to take over the TRAC-X North America High Yield Index series. Dow Jones Indexes planned to take over responsibility for the maintenance, calculation and distribution of index values and index data in the first quarter of 2004.
"As part of the agreement we will be putting together regional advisory committees in the U.S., Europe and Asia, which will comprise a broad base of credit derivatives market makers," said Lars Hamich, executive director of global business development at Dow Jones Indexes. "These committees will ensure that the Dow Jones TRAC-X Indexes remain an entirely neutral product created solely for the benefit of the credit derivatives market overall."
The advisory committees will advise Dow Jones Indexes on methodology, rebalancing and other related topics. Dow Jones Indexes will remain the ultimate decision maker.
"We have already received tremendous interest in issuing structured products, exchange-traded derivatives and ETFs based on the Dow Jones TRAC-X Indexes, and expect to issue the first licenses soon," said Hamich.
After consulting the 12 licensed market makers, the following 14 names will be added to the underlying basket of the Dow Jones TRAC-X North America High Yield Index Series 2 Index (consisting of the 100 most liquid North American highyield credit derivative swaps): Collins & Aikman Senior; Graphic Packaging International Inc.; Nalco Company; The Premcor Refining Group Inc.; DIRECTV Holdings LLC; DYNEGY Holdings Inc.; Williams Companies; Houghton Mifflin Company; Echostar DBS Corporation; AMR Corp.; United Rentals NA Inc. Sub.; TRIAD Hospitals Inc.; Case New Holland; and RJ Reynolds Tobacco HLDG.