Dow Jones Announces Licensing Program for Global Indexes.
Chicago Merc, Pacific Stock Exchange First to Trade Dow Global
Dow Jones & Company, developer and publisher of the most widely recognized and used stock market index in the world, the Dow Jones Industrial Average (DJIA), is moving to become the worldwide market standard for global investors. With the development of the Dow Jones Global Indexes, which track more than 2,800 stocks in nearly 30 countries, the company has created opportunities for U.S. and overseas investors to trade, compare, and participate in equity markets globally, with the same reliability and objective, third-party credibility that they associate with the DJIA.
For the first time in its 100-year history of tracking equity markets, Dow Jones & Company has licensed one of its market indexes for use in creating investment products. As previously announced, on January 8, 1997, the Chicago Mercantile Exchange will begin trading futures and options on futures on the Dow Jones Taiwan Stock Index(TM). The Pacific Stock Exchange will begin trading listed options on the same index on January 9.
The Dow Jones Taiwan Stock Index is one of 29 country indexes -- including 11 focused on Asia -- that make up the Dow Jones Global Indexes. The complex includes hundreds of indexes that track eight world regions, nine market sectors and 121 industry groups. Dow Jones Global Indexes represent 80% of the investable universe in each country, industry and region.
The market capitalization indexes are calculated real-time and distributed to more than five million users around the world. All of the Dow Jones Global Indexes are available for licensing and trading, and Dow Jones also can create and license customized indexes to meet client needs.
Fully Disclosed Indexes From an Objective Source
"The Dow Jones Global Indexes offer transparent, fully accessible global market barometers from an objective source," said John Prestbo, Dow Jones Global Indexes editor.
"The global indexes offer the uniformity and local index correlation required to make them highly reliable performance benchmarks," Mr. Prestbo said. "The indexes can also provide the basis for indexed investments, structured products, derivative instruments and other capital market applications."
Accessible, Investable Indexes
The indexes are monitored daily and companies are added or deleted as needed to enforce strict membership standards. Care is taken to assure that only liquid, easily traded issues are included so the indexes can be replicated by investors.
"It is consistent with the mission of Dow Jones to keep these indexes accessible and available for use by investors," said William C. Cox III, director of Dow Jones Global Indexes. "Investors can realize many of the advantages of our indexes by studying, testing and even replicating them for their own particular uses," he said.
Real-Time Updates on the WWW
Real-time calculations of the entire index series are now available on Dow Jones Telerate screens, where changes are displayed every 15 seconds. The entire index series is updated three times daily in The Wall Street Journal Interactive Edition on the World Wide Web (www.wsj.com). Anyone can download the Dow Jones Global Indexes, as well as complete details on their constituent components and methodology, (www.dowjones.com/indexes) in a format that makes the data easy to manipulate.
The indexes also are published daily in The Wall Street Journal, The Wall Street Journal Europe, The Asian Wall Street Journal and The Los Angeles Times Syndicate International. The Wall Street Journal Americas, Barron's, European Business News and other Dow Jones information products and services also feature presentations of the Dow Jones Global Indexes.
Dow Jones & Company, Inc. publishes The Wall Street Journal and its international editions, The Wall Street Journal Interactive Edition, Barron's magazine and other periodicals, electronic business information services and the Ottaway group of community newspapers.
Electronic information services include Dow Jones Telerate, a provider of real-time financial information to the international business community; Dow Jones News Service and other business newswires; and Business Information Services, which provides business information to corporations and consumers by computer, telephone, facsimile and radio. Dow Jones also produces business television programming internationally.
CONTACT: Dow Jones Global Indexes
Roger May, 212/416-2601
or: John Prestbo, 609/520-7079
or: William C. Cox III, 609/520-4075
Alan Towers Associates
Thomas Walek, 212/354-5020