Dow Jones Indexes will extend the real-time calculation of the Dow Jones industrial average to 13 hours a day, starting September 14.
Dow Jones Indexes will use component prices from Deutsche Boerse’s new U.S. market segment, which will be launched that same day on its electronic trading platform, Xetra. Additionally, Dow Jones Indexes will use Xetra to price the U.S. and Asian components of the Dow Jones global titans 50 index from the beginning of the European trading day until the U.S. market opens at 09:30 ET.
The indicative Dow Jones industrial average will be calculated and disseminated real-time from 03:00 ET to 9:30 ET. The official Dow Jones industrial average calculation will not change, resuming at 09:30 ET, with pricing from the New York Stock Exchange and Nasdaq markets. The official open, close and high/low values of the Dow Jones industrial average will not change and will be based solely on New York Stock Exchange and Nasdaq prices.
Investors and other market participants will now have an indication of the Dow Jones industrial average’s level prior to the opening of the U.S. market based on actual trades of the index’s 30 components. Dow Jones Indexes expects that the extended index calculation will help investors worldwide by providing more timely index values, improved liquidity of the stocks underlying the Dow Jones industrial average and the Dow Jones global titans 50, and improved price discovery in both cash and derivatives markets. Investable products based on the indexes are traded around the clock.
David Moran, president of Dow Jones Indexes said, “With its GlobalMarket Concept, Deutsche Boerse provides the basis for the Dow Jones industrial average to be the first country index to be calculated with price sources outside of its home time zone. We are confident that Deutsche Boerse, together with the market makers for this segment, will ensure the necessary liquidity in the underlying components that will result in a reliable indicative calculation of the Dow Jones industrial average and improved price discovery for the Dow Jones global titans 50 index prior to the U.S. market opening.”
Dow Jones extends calculation for DJIA
"Indicative" index to be available before U.S. markets open
- By: IE Staff
- August 16, 2001 August 16, 2001
- 08:40