STOXX Limited, a leading provider of innovative, tradable and global index concepts, and The Korea Exchange, Inc. (KRX) today announced the signing of a memorandum of understanding (MOU) to create a long-term cooperation between the two companies.
Under the MOU, STOXX and KRX intend to create a long-term business relationship to aid in the development of index projects. Furthermore, the companies will leverage one another’s strengths in promoting the other parties indices as underlying for financial products.
“STOXX is honored to enter into this MOU with KRX, which is one of the leading global exchanges,” said Hartmut Graf, chief executive officer, STOXX Limited. “STOXX and KRX share similar values of providing the marketplace with greater transparency and thus assisting the maintenance of orderly financial markets. Officially announcing our MOU today is also another very important step for STOXX on our Asia expansion path.”
Hochul Lee, president and CEO, The Korea Exchange, Inc.(KRX), commented: “KRX believes this MOU will open a new era of index business in both Europe and Asia. KRX is glad to formulate a long-term business relationship with STOXX and have no doubt it will make significant contributions to the Asian and European financial markets through the enhanced services by KRX and STOXX.
STOXX is a global index provider, which currently calculates over 7,000 strictly rules-based and transparent indices, among them the European flagship indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600. STOXX also maintains and calculates the a global index family, and is the marketing agent for the indices of Deutsche Boerse AG and SIX, amongst them the DAX and the SMI indices.
STOXX indices are licensed to more than 500 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds. Three of the top ETFs in Europe and 30% of all assets under management are based on STOXX indices. STOXX Ltd. holds Europe's number one and the world's number three position in the derivatives segment, and is the leader in the structures products market globally as well as in Europe.
KRX is a comprehensive securities market that meets the wide-ranging demands of investors with a diverse line-up of products extending from traditional securities such as stocks and bonds to derivatives, exchange traded funds (ETFs), equity linked warrants (ELWs), real estate investment trusts (REITs) and ship investment companies. In particular, it maintains low transaction costs by integrating the management of the securities and derivatives markets and provides investors with efficient means to hedge risks and manage assets.
As a leading index provider, KRX is providing global investors with a wide range of the state of the art Korean capital market indices. KOSPI 200 is a flagship product of KRX and it is one of the most actively traded underlying index in the world. KRX is expanding its global index business consistently to provide better and transparent financial services to market participants.