JP Morgan looks to emerging equities for synthetics

JP Morgan and Deutsche Börse have teamed up on the launch of the DAXglobal Emerging 11, an index of emerging market equity exposures.

The constituents of the index will be seven of the so-called Next 11 countries, the 11 most promising medium-sized emerging-market economies.

The 40 largest and most-listed stocks on the exchanges in Indonesia, Mexico, Pakistan, the Philippines, South Korea, Turkey and Vietnam are included. The weighting of each country in the index is assessed quarterly, according to liquidity and market capitalisation. Liquidity is measured through the daily average volume traded, measured over six months. In addition, countries and companies included are reassessed yearly.

The index is traded exclusively by JP Morgan for the first three months, which is marketing a linear index certificate. It plans to launch further structured products referencing the index at a later date. The notes will be offered in capital-protected and partial capital-protected formats.