Deutsche Borse went live Wednesday with a new strategy index, which it calls LevDax.
The new index adds leverage to the DAX’s performance, with which LevDAX’s performance is linked.
The LevDAX is designed, Deutsche Borse says, to be a basis for ETFs and structured products.
The leverage factor for the LevDAX is set up to be adjusted daily, to ensure that the index achieves double what the performance of the DAX is as based on the previous day’s closing level.
The index protects against total loss by immediately adjusting the leverage factor in the case that the DAX drops by more than 25 percent against the previous day