John Lothian News interviewed Tim McCourt, Global Head of Financial and OTC Products at the CME Group and Catherine Yoshimoto, Director of Product Management for the Russell US Indexes, FTSE Russell about the June 23 FTSE Russell reconstitution.
- This year marks the 35th anniversary of the annual Russell Reconstitution. What exactly is it and how does it work?
- Why is the annual Russell US Indexes rebalancing such an important event for the markets and investors? How many assets are benchmarked to products tracking the Russell US Indexes?
- What are some of the main highlights and notable changes that will take effect at the conclusion of this year’s Reconstitution after US market close on June 23rd?
- What does this year’s Reconstitution signify for what lies ahead for this year’s equity markets? How might this be used as an economic indicator?
- How can market participants use derivatives, specifically E-mini Russell 2000 futures and options, to hedge around the annual rebalancing?
- How can investors take advantage of the small cap market to enhance portfolio performance and manage market risk?
- Russell Reconstitution concludes with traditionally one of the highest trading volume days of the year on major US equity exchanges. How much trading typically occurs?
- Where can people go for more information ahead of the June 23rd conclusion? The answer is the Russell Reconstitution landing page: www.FTSERussell.com/Resources/Russell-Reconstitution