OMX Baltic 10 index futures introduced

06.09.2007 VLN

OMXB10 is a tradable index, which highlights the most liquid investment opportunities in the Baltic region. The index consists of the 10 most liquid stocks listed on the Tallinn, Riga and Vilnius stock exchanges. This makes the OMXB10 future an excellent instrument for quickly and efficiently gaining, increasing or reducing exposure to the Baltic market.

The purchase of a future issued on OMXB10 is an alternative to buying the shares comprised by the index. Index futures can be used to make investment based on the view of the future development of the market as well as to reduce risk in an existing stock portfolio. OMXB10 futures contracts are marked to market via daily settlement. Daily settlement leads to an effective use of capital and allows for realized profit and loss during the contracts term.

“The first exchange-traded Baltic asset-related derivatives will widen our offering for investors, increasing attractiveness of the Baltic securities market and ensuring its further development. Using futures for risk hedging can be especially attractive for institutional investors, such as pension funds in Baltic countries when they obtain a possibility to have a higher proportion of funds correlated with the stock market,” says Johan Rudén, President of the Baltic Market business unit at OMX.

Trading with futures on OMXB10 can be done through a derivatives member or their partners. In addition convenient access to the derivatives market for members of the Baltic market on the Nordic Exchange is being facilitated.

The introduction of futures on OMXB10 is as a result of ongoing product development by OMX. Additional information from website.