S&P Expands Family of Fixed Income Indices with Launch of TIPS Index
NEW YORK, May 10, 2011 /PRNewswire/ – Adding an important piece to its growing family of fixed income indices, S&P Indices announced today the launch of the S&P/BGCantor U.S. TIPS Index – the only index in the market to use pricing exclusively from BGC Market Data LP. The S&P/BGCantor U.S. Treasury Inflation Protected Security Index is a broad, comprehensive, market value-weighted index that seeks to measure the performance of the U.S. Treasury Inflation-Protected Securities (TIPS) market.
S&P Indices also announced today that it is now publishing the S&P/BGCantor U.S. Treasury Bond and Treasury Bill Indices on an intraday basis. The S&P/BGCantor U.S. Treasury Index family is abroad, comprehensive, market-value weighted family of indices that seeks to measure the performance of the U.S. Treasury market.
TIPS is an acronym for Treasury Inflation Protected Securities, marketable Treasury securities whose principal is adjusted according to changes in the Consumer Price Index (CPI). TIPS are designed to provide protection against inflation, with the principal of the security increasing with inflation and decreasing with deflation, as measured by the CPI. According to the Securities Industry and Financial Markets Association (SIFMA), the market value for TIPS outstanding as of end of March 2011 is $640.8 billion.
The S&P/BGCantor U.S. TIPS Index is a market-value-weighted index. Index weights are based, in part, on outstanding Par Amounts for securities. BGC Market Data LP provides the inflation adjusted price of each bond in the Index. The prices used in the Index calculation add the accrued interest to the market price of each security reported by BGC Market Data LP each day. The Index is rules driven, the hallmark of which is transparency and predictability.
“As the ever present risk of inflation continues to weigh on the minds of investors, we are pleased to align with BGC Market Data LP to provide additional insights into the TIPS market,” says J.R. Rieger, Vice President of Fixed Income Indices at S&P Indices. For more information on the S&P/BGCantor U.S. TIPS Index, please visit: www.fixedincomeindices.standardandpoors.com.
About S&P Indices
S&P Indices, a world leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor’s family of indices, which includes the S&P 500, the world’s most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry’s most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.
Standard & Poor’s does not sponsor, endorse, sell or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where Standard & Poor’s or its affiliates do not have the necessary licenses. Standard & Poor’s receives compensation in connection with licensing its indices to third parties. It is not possible to directly invest in an index.
About BGC Partners, Inc.
BGC Partners is a leading global broker servicing the wholesale financial markets, specializing in the brokering of a broad range of financial products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, structured products and other instruments. BGC also provides a full range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back office services to a broad range of financial and non-financial institutions. BGC’s integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and processing of transactions, and enables them to use voice, hybrid, or where available, fully electronic brokerage services in connection with transactions executed either OTC or through an exchange. Through its eSpeed, BGC Trader, and BGC Market Data brands, the Company offers financial technology solutions, market data, and analytics related to select financial instruments and markets. BGC’s customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments and investment firms. Named after fixed income trading innovator B. Gerald Cantor, BGC has offices in 24 cities, located in New York and London, as well as in Aspen, Beijing, Chicago, Copenhagen, Dubai, Garden City, Hong Kong, Istanbul, Johannesburg, Mexico City, Moscow, Nyon, Paris, Rio de Janeiro, SÃƒ£o Paulo, Sarasota, Seoul, Singapore, Sydney, Tokyo, Toronto, and West Palm Beach.
Discussion of Forward-Looking Statements by BGC Partners
Statements in this press release regarding BGC Partners’ business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see BGC Partners’ Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors set forth in our public filings which we incorporate by reference, including our most recent 10-K and any updates to such risk factors contained in subsequent 10-Q filings.
SOURCE Standard & Poor’s