Markit launches GEMX, a new emerging markets index

By Laura Lutz

Des Moines, April 9 - Markit Group Ltd. announced that it has begun publishing levels for a new emerging markets index, the Markit iBoxx Global Emerging Markets Local Currency Bond index, or GEMX.

The index is intended to serve as a benchmark of the World Bank Group's Gemloc program, which is designed to help emerging market countries attract more investment and develop their local-currency bond markets.

Twenty countries are currently included in the GEMX index. More are expected to be included later this year.

Asia - initially represented by China, India, Indonesia, Malaysia, the Philippines and Thailand - currently has a combined weighting of 31%. The region includes 90 bonds with an average duration of 4.83 years.

Europe, the Middle East and Africa - initially represented by Hungary, Poland, Russia, Slovakia, Turkey, Egypt, Morocco, Nigeria and South Africa - currently has a combined weight of 44%. The region includes 118 bonds with an average duration of 4.15 years.

Latin America - initially represented by Brazil, Chile, Colombia, Mexico and Peru - currently has a combined weight of 25%. The region includes 257 bonds with an average duration of 4.33 years.

Markit said it was selected to develop the index in February by International Finance Corp., a member of the World Bank Group.

Markit provides independent data portfolio valuations and over-the-counter derivatives trade processing to the global financial markets.

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