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Dow Industrials Will Be Available
Before Opening of New York Trade
By SILVIA ASCARELLI
Staff Reporter of THE WALL STREET JOURNAL
LONDON -- The Dow Jones Industrial Average will be available to investors
for the first time well before U.S. trading, using prices from Europe, as
part of a move by Frankfurt's Deutsche Boerse to start trading U.S. shares
in Germany.
The German exchange said it will begin trading the shares of about 200 U.S.
companies in September. Deutsche Boerse said that from 9 a.m. to 8 p.m.
German time (which is 3 a.m. to 2 p.m. Eastern Daylight Time), it will trade
all 30 shares in the Dow Jones Industrial Average, the Standard and Poor's
100-stock index, the Nasdaq 100 index and the Dow Jones Global Titans.
To support that effort, Dow Jones & Co.'s Dow Jones Indexes, which maintains
the Dow Jones averages, said it will begin calculating "indicative" levels
for the industrial average at 9 a.m. in Germany -- that is, usually 6 1/2
hours prior to the opening of the U.S. market -- using prices on Germany's
Xetra electronic-trading system. That means the industrial average will be
calculated on a real-time basis for 13 hours a day.
"Now more than ever, investors need to know how the market is doing, at any
time of day or night," said Peter Kann, chairman of Dow Jones. "The Dow
Jones Industrial Average is a key barometer throughout the global
marketplace and this is our first step in making the Dow Jones Industrial
Average available around the clock."
Dow Jones also is the publisher of The Wall Street Journal and The Wall
Street Journal Online.
Dow Jones added that the Deutsche Boerse will also offer prices for the
components of the Dow Jones Global Titans 50, a global blue-chip-stock
index. Morgan Stanley, Goldman Sachs and three small German brokers will act
as market makers for the U.S. shares.
Deutsche Boerse also said it will offer options on about 10 U.S. stocks on
the Eurex derivatives market, of which it owns 50%. Deutsche Boerse
identified four of those stocks: Cisco Systems Inc., International Business
Machines Corp., Intel Corp. and Microsoft Corp. Eurex won't be launching
futures-and-options contracts based on the DJIA.
The new trading plan aims to compete with the London Stock Exchange's SEAQ
International system. Deutsche Boerse said prices for U.S. shares will be
quoted in euros. The LSE's service quotes international shares in sterling,
and Nasdaq Europe plans to quote U.S. share prices in dollars.
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