Russell Investments is planning its annual index realignment today, affecting more than $5T in assets. Credit Suisse estimates $42B will trade as a result of the adjustment, resulting in one of the biggest trading days of the year in terms of dollar volume.
Asset managers and investors will have to realign their portfolios to match up with the new shifts in indices such as the Russell 2000 and the Russell 3000.
Due to the expected surge in volume, exchanges are now busy preparing for possible technical issues occurring over the course of the day.
Yesterday, the London Stock Exchange said it will acquire Frank Russell for $2.7B.
London Stock Exchange (LDNXF) has announced that it is buying the asset-management and stock index unit Frank Russell for $2.7B. A large chunk of the funding for the acquisition will be based off a $1.6B rights issue to be issued in September.
The stock-index operations of Frank Russell include the Russell 2000 barometer of small-cap stocks, while the investment business has $256B in assets under management.
London Stock Exchange (LDNXF) is in exclusive negotiations with Northwestern Mutual Life Insurance to buy the latter's asset-management and stock index unit, Frank Russell, which the WSJ reports could be worth $3B.
The stock-index operations include the Russell 2000 barometer of small companies, while the investment business has $260B of assets under management. (PR)
Today saw the launch of 17 new exchange traded notes: 11 from iPath offering leveraged and inverse leveraged exposure to major U.S. and international equity indexes, and 6 from new issuer VelocityShares offering multiple ways to access long, short, and leveraged VIX Volatility Index exposure. Nov. 30, 2010, 4:54 PM