MTSNext says that the EuroMTS Inflation Linked Index (EMTXi) is now being calculated and published in real time with index prices updated every 30 seconds. The EMTXi is the first real time index of eurozone inflation-linked bonds.
The EMTXi, originally launched in June with two daily fixings, uses transparent, tradable, real-time bond prices from the EuroMTS Linkers Market, which was established in May 2004 to increase the liquidity of the eurozone inflation-linked government bond market. The EMTXi incorporates eurozone issues quoted on MTS – the reference market in Europe for fixed income securities – with more than EUR2 billion in outstanding size and at least one year to maturity. The index, comprised of the entire range of inflation-linked securities listed on the EuroMTS Linkers Market, currently includes one Greek, two Italian and seven French inflation-linked bonds. The new 30-year inflation linked bond of the Republic of Italy will be included on December 2.
“The real time publication of the EMTXi is a response to requests from market participants for a transparent index which will serve as the basis for new financial instruments, such as ETFs, OTC derivatives or structured products,” says Scott Stark, CEO of MTSNext. Three ETFs, based on the EuroMTS Indices, are currently listed on the Euronext and Borsa Italia exchanges with over EUR350 million in assets under management. In addition to ETFs, the EuroMTS Indices are used as benchmarks by over 200 institutions with an estimated EUR200 billion in assets referenced to the indices.