A record 1.57 billion shares representing $56.7 billion were executed in the Closing Cross in 1.46 seconds across Nasdaq-listed securities. This compares with 1.279 billion shares representing $42.59 billion executed in 1.14 seconds across Nasdaq-listed securities during Russell's 32nd annual reconstitution in 2019.
"Today's record-breaking Nasdaq Closing Cross benefits issuers and investors by facilitating a transparent and efficient price discovery process," said Tal Cohen, Executive Vice President and Head of North American Markets at Nasdaq. "This year our markets have withstood significant volatility and exhibited remarkable resiliency. With Nasdaq's technology supporting the rebalance, Russell's U.S. indexes continue to accurately reflect the ever-changing state of the equity market and its segments."
"This is a new record for the Russell U.S. indexes," said Waqas Samad, CEO of FTSE Russell. "The annual rebalancing is a significant event for the U.S. equity market, and a central part of maintaining the integrity and relevance of our leading set of U.S. benchmarks, which millions of investors rely upon to provide the most comprehensive and accurate measure of the US equity market. Our longstanding and successful work with Nasdaq around the annual Russell rebalance help make it a vital and transparent market event every year."
The Closing Cross brings together the buy and sell interest for Nasdaq, NYSE and NYSE MKT stocks, and executes all shares for each stock at a single price, one that reflects the true supply and demand for these securities. All nationally listed securities are eligible for the Nasdaq Closing Cross.
All Russell U.S. indexes are subsets of the Russell 3000 Index, which represents approximately 98% of the U.S. equity market. Russell U.S. Indexes allow investors to track current and historical market performance by specific market segment (large cap/small cap) or investment style (growth/value/defensive/dynamic). Today, approximately $9 trillion in assets are benchmarked to or invested in products based on the Russell U.S. indexes.
Russell reconstitution day is one of the year's most highly anticipated and heaviest trading days in the U.S. equity market, as asset managers seek to reconfigure their portfolios to reflect the composition of Russell's newly-reconstituted U.S. indexes. The index reconstitution process was completed today and the newly reconstituted index membership will take effect when markets open on Monday, June 29, 2020.
Please visit our website for more information on the Nasdaq Closing Cross.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
About FTSE Russell:
FTSE Russell is a leading global index provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by London Stock Exchange Group.
For more information, visit www.ftserussell.com.
© 2020 GlobeNewswire (Europe)
