TSE introduces new index

On Oct. 1, the Toronto Stock Exchange will introduce a new benchmark of Canadian market performance — the TSE 100 Index.

According to the TSE, the 100 Index is intended mainly to enable institutional investors to measure their activity in the Canadian equity market.

It will include 100 of the largest, most liquid securities in the Canadian market.

“The TSE 100 should provide a more appropriate index for institutional performance measurement since it contains an accurate list of the names of securities which large institutional investors can trade, without size or liquidity limitations,” said Pearce Bunting, TSE president and chief executive officer.

The TSE 100 will comprise four economic sectors — resource, industrial, interest-sensitive and consumer. Derivative products, such as futures, options and an index participation unit, will soon be available.