InvestmentsApr 30 2015

ETF launch allows investors to trade FTSE 100 24 hours a day

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ETF launch allows investors to trade FTSE 100 24 hours a day

Investors will now be able to trade the FTSE 100 index 24 hours a day following the launch of a US-listed fund tracking the benchmark UK index.

FTSE Group today announced it had licensed the FTSE 100 index to Recon Capital Partners, a US firm that will use the index as the underlying benchmark for the Recon Capital FTSE 100 ETF.

This new exchange traded fund (ETF) will be the first listed in the US that uses the FTSE 100 as its benchmark.

FTSE Group said: “Following this launch, investors will have the opportunity to trade the FTSE 100 throughout the 24 hour trading day globally.”

Although there were FTSE 100 tracker funds available in Asia, there had previously been a gap between the close of UK trading at 4.30pm and Asian markets opening, during which time US stock markets are open.

Kevin Kelly, managing partner, Recon Capital Partners, said: “With the arrival of the Recon Capital FTSE 100 ETF, the sun will never set on the ability to trade ETFs benchmarked to Britain’s flagship index.”

The FTSE 100 index was launched 30 years ago and has developed into the main benchmark for large cap UK companies, with a combined market capitalisation of approximately £2trn.

Following the launch of the Recon Capital fund, FTSE Group said there were now 119 North American ETFs tracking FTSE indices.