T3 Index, a research driven financial indexing firm, announced it is launching the E8 Index, which measures the performance of the world’s largest emerging markets forex exchange rates. The index includes the rates of the Chinese Yuan, the South Korean Won, the Indian Rupee, the Mexican Peso, the Brazilian Real, the Russian Ruble, the Turkish Lira and the South African Rand.
The weightings of the individual currencies include changes in forex turnover, GDP and trade statistics of the respective country. Unlike the existing benchmarks in this asset class, the E8 Index invests in highly liquid three month forex forwards.
“We are really excited about the E8 Index because it overcomes the many barriers to investing in emerging markets. This Index provides a simple, liquid and transparent way for global investors to gain exposure to the core eight EM countries in a single trade”, said Simon Ho, CEO at T3 Index.
According to the company statement, the E8 Index is the first of a series of emerging markets forex benchmark indices to be launched by T3 Index. It will include regional sub-indices and volatility series over these benchmarks.
T3 Index is based in Australia. It was established in 2009 and specializes in developing innovative volatility and option-related indices across asset classes. The indices of the company are engineered to reflect the conventions of the underlying market and track related strategies across a range of asset classes.