The Nasdaq Stock Market, the second-largest US stock exchange,
will introduce options, futures and an exchange-traded
fund based on its composite index, seeking to find new
products as trading volume and fee-revenue shrink.
new products, coming later this year, will add to Nasdaqs
existing offerings tied to its Nasdaq 100 Index, which
consists of 100 of the largest non-financial companies
listed on the exchange, says John Jacobs, executive vice-president
for financial products. The composite index includes more
than 3,500 stocks.
Nasdaq Composite is one of the most widely followed benchmarks
anywhere, Jacobs says. Were going to roll out derivatives
first, index futures and index options. Jacobs adds that
the products will be backed by a partner he declined to
name. He wouldnt say when they will be launched.
introduced its first exchange-trade fund four years ago
based on its 100 Index. Exchange-traded funds buy and
sell shares on exchanges throughout the day. Investors
can create new shares by exchanging the underlying stocks,
or liquidate them by receiving the stocks.
Nasdaq fund, known by its ticker symbol QQQ, has $16.1
billion in shares outstanding. It is the second-largest
exchange-traded fund after the $33.8 billion SPDR Trust,
which is based on the Standard & Poors 500 Index.
York-based Nasdaq also licensed its index of biotechnology
companies for use by Barclays Global Investors, a unit
of Barclays Plc, for an exchange-traded fund in 2001.