NEW YORK - June 25, 2012 (Investorideas.com Newswire) Dow Jones Indexes, a leading global index provider, and FXCM Inc. (NYSE:FXCM), a global online provider of foreign exchange trading and related services, today announced they have collaborated to launch the Dow Jones FXCM Yen Index.
The new index measures changes in the value of the Japanese yen against a basket of four of the most-transacted currencies against the yen: the U.S. dollar, the euro, the Australian dollar and the New Zealand dollar.
The index is the second to be offered collaboratively by Dow Jones Indexes and FXCM. In May 2011, the two firms launched the Dow Jones FXCM Dollar Index.
Both the Dow Jones FXCM Dollar Index and the new Dow Jones FXCM Yen Index follow a methodology that utilizes FX quantities as the basis of its calculation, rather than FX spot rates, to enhance transparency. With the goal of mimicking real-world FX portfolio construction, this approach also facilitates usage of the indexes as the basis for a wide range of instruments such as ETFs, mutual funds, forwards, futures, swaps, options, and structured products.
"We're pleased to build upon the success of the Dow Jones FXCM Dollar Index by offering investors a comparable index for the yen," said Michael A. Petronella, President, Dow Jones Indexes. "The Japanese foreign exchange market is the biggest in the world, and there is tremendous local and international investor interest in the yen. This index offers investors a unique tool for following the currency's relative value."
The index is constructed by initially equally weighting the following four currency pairs: USD/JPY, EUR/JPY, AUD/JPY and NZD/JPY. The index is reset to equal weighting only at rebalancings that occur in the event that the value of any single currency position declines by 90%, or in the case of qualified structural changes in the marketplace.
The four currency pairs were selected for the index primarily based on their liquidity and on real capital flows between the represented economies. Geographic diversification was another factor considered in selecting the currencies.
About Dow Jones Indexes
Dow Jones Indexes is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. and 10 percent by Dow Jones & Company, Inc., a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV).
The Dow Jones FXCM Yen Index is a joint product of Dow Jones Indexes, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME Indexes"), and Forex Capital Markets, LLC including its affiliates and subsidiaries ("FXCM"). "Dow Jones(R)," "Dow Jones Indexes," "FXCM" and "Dow Jones FXCM Yen Index" are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones") or FXCM, as the case may be, and have been licensed for use by CME Indexes. The Dow Jones FXCM Yen Index is published pursuant to an agreement between CME Indexes and FXCM.
FXCM Inc. (NYSE:FXCM) is a global online provider of foreign exchange (forex) trading and related services to retail and institutional customers world-wide.
At the heart of FXCM's client offering is No Dealing Desk forex trading. Clients benefit from FXCM's large network of forex liquidity providers enabling FXCM to offer competitive spreads on major currency pairs. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. FXCM's U.K. subsidiary, Forex Capital Markets Limited, also offers CFD products with no re-quote trading and allows clients to trade oil, gold, silver and stock indices along with forex on one platform. In addition, FXCM offers educational courses on forex trading and provides free news and market research through DailyFX.com.
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