1996, the CECE Index family of currently five indexes that cover the
emerging stock markets of the four Višegrad countries (Czech Republic,
Hungary, Poland, and Slovak Republic) was introduced by the Vienna Stock
Exchange (formerly Austrian Future and Option Exchange, ÖTOB). The CEX
serves as a benchmark for the central European region and provides an
underlying instrument for futures and options trading. Currently, the
CEX is composed of 44 shares.
The CEX is constructed as a group index
of four sub-indexes, which represent the individual countries as follows:
Czech Republic (index capitalization US$ 2.6bn., 59% of the Czech liquid
market), Hungary (index capitalization US$ 4.2bn., 86% of the Hungarian
liquid market), Poland (index capitalization US$ 4.2bn., 60% of the
Polish liquid market), and the Slovak Republic (index capitalization
US$ 0.6bn., 70% of the Slovak liquid market).
The CEX is calculated as a US$-based capitalization-weighted
price index. The CEX incorporates stock-specific free float factors
which are intended to ensure that the weight of a particular stock in
the index roughly corresponds to the fraction of the registered capital
that is actually available for public trading on the stock exchange.
These free float factors are set to 0.5 for stocks with a free float
equal to or less than 50% and to 1 otherwise.