FTSEFinancial Times Stock Exchange

Financial Times Stock ExchangeIntroduction

• The FTSE Group was created in 2002.

• FTSE Group (FTSE) is a world-leader in the creation and management of over

120,000 equity, bond and alternative asset class indices.

• The Group owns offices in London, Frankfurt, Hong Kong, Beijing, Boston,

Shanghai, Madrid, Paris, New York, San Francisco, Sydney and Tokyo, FTSE

Group works with partners and clients in 77 countries worldwide.

• It is a British provider of stock market indices and associated data services,

operating out of premises in Canary Wharf.

• FTSE is an independent company jointly owned by The Financial Times and

the London Stock Exchange. FTSE does not give financial advice to clients,

which allows for the provision of truly objective market information

Products

• FTSE operates the well known FTSE 100 Index and FTSE 250

Index as well as over 100,000 other indices, including 600 real-

time indices.

• There are currently seven main groups of indices: Global Equity,

Regional and Partner, Fixed Income, Real Estate, Alternative

Investment, Responsible Investment, and Investment Strategy.

• Fees from the use of index information and associated services

generate revenues necessary to continue operations..

• FTSE indices are used extensively by a range of investors such as

consultants, asset owners, fund managers, investment banks,

stock exchanges and brokers.

Awards

• 2008 FTSE voted 'Global Index Provider of the Year‘

• 2006 FTSE voted 'Global Index Provider of the Year'

• 2005 FTSE RAFI Indices receive 'William F Sharpe Indexing

Achievement Award for Most Innovative Benchmark'

• 2005 FTSE voted 'Global Index Provider of the Year'

• 2005 FTSE voted 'Structured Product Index Provider of the Year'

• 2004 FTSE voted 'Global Index Provider of the Year'

FTSE History

1962 FTSE All-Share Index first calculated

1984 FTSE 100 first calculated

1985 FTSE World Index first calculated

1995 FTSE established as an independent company

1999 FTSE's first overseas office opened in New York

1999 FTSE's Global Classification System implemented

2001 FTSE Xinhua Index was established in China

2002FTSE launched global bond indices and introduced a

custom solutions offering

2003 FTSE opened an office in Tokyo, totaling 8 offices globally

2004 FTSE launched corporate governance and hedge indices

2005 FTSE launched investment indices

2005Industry Classification Benchmark developed between

FTSE and Dow Jones Indexes

50%50%

Share holding pattern of FTSE

The financial TimesLondon Stock exchange

FTSE is a 50-50 joint venture between The Financial Times and The

London Stock Exchange.

Attribute Value

Number of Constituents 630`

Net Market Cap (GBPm) 1,568,687

Weight of Largest Constituent (%) 6.97

Top 10 Holdings (% Index Market Cap) 39.66

FTSE All Share Index Portfolio Characteristics.

17%

12%

8%

11%8%10%

6%

4%

23% 2%

Index weight Industrial Breakdown

Oil and Gas Basic Materials Industrials Consumer GoodsHealth Care Consumer Services Telecommunication UtilitiesFinancials Tecnology

Partnership of FTSE

• American Stock ExchangeETFs on FTSE indices (2002)• The Athens ExchangeFTSE Med 100 Index (2003)• Bursa MalaysiaFTSE Bursa Malaysia Index Series (2006)• Dubai International Financial Exchange (DIFX) (2006)• EuronextFTSEurofirst Index Series (2003)• Indonesia Stock ExchangeFTSE/ASEAN Index Series

(2005)• London Stock ExchangeFTSE UK Index Series, FTSE

TechMARK Index Series (2000), FTSE AIM Indices (2005), FTSE Russia IOB Index (2006)

• NASDAQFTSE NASDAQ Index Series (2005)• PensionDCisionsFTSE PensionDCisions DC Index Series

(2010)• Singapore ExchangeFTSE/ASEAN Index Series (2005)

Major news and events• FTSE launched the pioneering Environmental Markets

Classification System and new regional Environmental

Opportunities indices on 18 June at the London Stock

Exchange.

• FTSE Group and Shanghai Wind Info, the leading data and

financial software vendor in mainland China, have joined

forces to provide FTSE’s end-of-day index data to over

1,500 QDII institutions and securities firms via Wind

Financial Terminals.

• FTSE and the Straits Times Index (STI) have launched a

series of educational webinars, which are now available

online for investors considering including the Singapore

market in their portfolios.

Contd..

• In March, FTSE was presented for the 4th year with

the Index Provider of the Year award from Global

Pensions, which is selected by an international panel

of asset owners and consultants.

• FTSE opened a new office in Milan as part of our

ongoing drive to support business activities

worldwide.

Regulators

• Financial Services Authority (FSA) is the regulating body for FTSE.

• The Financial Services Authority is the independent regulator set up by the

United Kingdom government to look after the financial services industry

and protect consumers. 

• The FSA regulates most financial services markets, exchanges and firms.

FSA sets the standards that exchanges, firms must meet and hence FSA

can take action against firms if these firms and exchanges fail to meet the

required standards.

• The Financial Services Authority (FSA) is an independent non-governmental

body, given statutory powers by the Financial Services and Markets Act

2000.

Cont……

• Statutory Objectives:

A. Market confidence

B. Public awareness

C. Consumer protection

D. The reduction of financial crime

E. Reducing the extent to which it is possible for a business to

be used for a purpose connected with financial crime

FTSE 100 Index

• This index comprises the 100 most highly capitalised

blue chip companies, representing approximately

81% of the UK market. It is used extensively as a

basis for investment products, such as derivatives

and exchange-traded funds.

• Average Trading volume 2,200,468,543

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