Visegrad countries

Mid 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.

CECE Index: Wiener Börse AG (Vienna Stock Exchange). Text: Institute for Advanced Studies, Vienna, 1998. All rights reserved.

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