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The WSJ and DJ FX Trader launch the WSJ Dollar Index. Named the BUXX, it differs from other...

  • Wednesday, July 18, 2012, 6:16 AM ET
    The WSJ and DJ FX Trader launch the WSJ Dollar Index. Named the BUXX, it differs from other dollar indexes by being reweighted over time to adjust for changes in the trading volume of the currencies in it. Among those it goes up against is the Dow Jones FXCM Dollar Index, in which WSJ publisher Dow Jones owns 2.6%.
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    This appears to be an effort by the WSJ to segment the market for a dollar index with the hope of catching a larger share of the FX trades. I am not convinced that the slight new twist that they have introduced in their methodology is that meaningful. If I understand their announcement correctly then they plan to differentiate their product by rebalancing the Index once every three years. That is not exactly "regular rebalancing". I do not foresee a major difference in performance between these various indeces that goes beyond say the S&P 500 vs DJIA i.e. they probably will be very highly correlated.
    18 Jul 2012, 06:34 AM Reply Like
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