Russell Indexes has launched an index of the 150 UK mid-cap stocks that can be most easily traded in volume.
The company says it consulted with the likes of Barclays, Goldman Sachs and JP Morgan to determine the need for indices that can be bought and sold quickly in what can be an illiquid market.
“The index is a trading-oriented one, and constituents are evaluated monthly in order to provide greater liquidity, higher capacity and lower costs for those looking to access UK mid-cap investment opportunities,” says Gareth Parker, senior director of index research and design for Russell Investments Europe.
Russell says it has worked with NYSE Liffe to develop futures based on the index, which could soon be available for trading on Bclear, the exchange’s trade administration and clearing service.
In 2012, Russell launched the Russell Europe SMID 300 Index, which includes the 300 most tradable components of the small and mid-cap sector in developed Europe.
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