New York - 5 May 2011-The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) and Data Explorers today announced the introduction of the NASDAQ-100 Data Explorers Optimized Index (NASDAQ:NDXOPT). The new index is an optimized version of the NASDAQ-100 Index® (NASDAQ:NDX), a globally recognized brand comprised of 100 of the world's largest, most dynamic non-financial companies. The NASDAQ-100 Data Explorers Optimized Index offers a tradable benchmark that will enhance liquidity and protect both the long and short investor.The new index is unique because it screens out stocks that are either lacking in liquidity or relatively expensive to borrow in the stock lending market based on analytics from Data Explorers, the leading global provider of stock lending and short interest information.
The optimized version of the NASDAQ-100 Index retains the return and volatility characteristics of the original index, with enhanced liquidity to support both the long and short sides of the trade. The chart below shows the close relationship between the NASDAQ-100 Data Explorers Optimized Index and the NASDAQ-100 Index.
John Jacobs, NASDAQ OMX Executive Vice President commented: "The launch of the NASDAQ-100 Data Explorers Optimized Index offers investors the liquidity of the NASDAQ-100 Index components but with extra measures of liquidity. The inclusion of information from Data Explorers, the world's premier provider of stock loan data, reflects our constant innovation to improve the usability and effectiveness of our indexes."
The constituents of the NASDAQ-100 Index are screened quarterly using methodology created by Data Explorers to identify stocks that are either lacking in liquidity or relatively expensive to borrow. The company analyzes daily stock lending and short interest information covering more than 3 million daily transactions, collected from the world's leading investment banks, prime brokers, lending agents, beneficial owners and hedge funds. Prior to the launch, the NASDAQ-100 Data Explorers Optimized Index screened out 18 stocks per the index methodology.
Donal Smith, CEO, Data Explorers added: "We believe the application of our screening methodology to the NASDAQ-100 Data Explorers Optimized Index will help investors improve liquidity and manage risk. We are confident this new index will become a model for the construction of other new indexes and the basis of exchange-traded products."
The NASDAQ-100 Index is the initial index universe for the NASDAQ Data Explorers Optimized series. Over the coming months, NASDAQ OMX and Data Explorers will launch additional indexes based on the optimized methodology.
About NASDAQ OMX Global Index Group
NASDAQ OMX Global Index Group is engaged in the design, development, calculation, licensing, and marketing of NASDAQ OMX Indexes. NASDAQ OMX Global Index Group specializes in the development of indexes focusing on NASDAQ OMX's brand themes of innovation, technology, growth, and globalization. NASDAQ OMX Global Index Group also provides custom index services and design solutions as a third-party provider to selected financial organizations. For more information about NASDAQ OMX indexes, visit www.nasdaq.com/indexes.
Access to essential historical index data for NASDAQ OMX indexes can be accessed from a single source, NASDAQ OMX Global Index Watch. For additional information, please visit https://indexes.nasdaqomx.com/indexwatch.aspx.
About Data Explorers
Data Explorers (www.dataexplorers.com) is the leading global provider of securities financing data and daily long and short institutional fund flow insight. Based in New York, London and Hong Kong, the company's analytics help clients identify investment opportunities and manage risk by analyzing fund flow, stock loan availability, short interest and stock lending volume. Established in 2002, Data Explorers unique content set of more than nine million daily position updates is sourced directly from contributing customers across securities financing, including investment banks, prime brokers, lending agents, beneficial owners and hedge funds.
About NASDAQ OMX
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,500 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX first North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. *Please follow NASDAQ OMX on Facebook (http://www.facebook.com/pages/NASDAQ-OMX/108167527653) and Twitter (http://www.twitter.com/nasdaqomx). For more information about NASDAQ OMX, visit http://www.nasdaqomx.com.