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FTSE 250

Guest Dan

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Any plans to bring the FTSE 250 spread in line with other markets such as the FTSE 100, Dow or other major European indices? This market just seems prohibitively expensive compared to other mid-cap indices such as the Russell 2000.



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Hi , thanks for your post!


The reason that the spread on the FTSE Mid 250 is different to other major European indices is because it is not traded in the same way, and we consider it a basket of constituent shares rather than an index itself.   As we cannot hedge it in an underlying index, and need to deal with each share individually, it is not as liquid a market for us, and therefore our spreads are somewhat wider to adjust for this.


Hope this explains it, but let us know if you have any more queries.




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