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GLOSSARY

ESSENTIAL TERMS AND DEFINITIONS

Diversification

Diversification (as in the Index designation) is a “do not put all eggs in one basket” approach, where investors create a Portfolio of assets (i.e. stocks, bonds, commodities) that react differently to the same event, with the objective of reducing risk while generating positive returns in the long run.

Rules-based index

A rules-based index is an index where the weightings of the components are determined following a pre-defined algorithmic set of rules and proprietary formulas.

Futures indices

The futures indices compiling the BNP Paribas Multi Asset Diversified X Index are indices that track the performance of certain futures contracts. A futures contract is an agreement, to make and receive a cash payment based on changes in the price of a particular commodity or financial instrument at a pre-determined date in the future.

Portfolio

The Portfolio of the BNP Paribas Multi Asset Diversified X Index represents the basket of the Index’s nine (9) components, whose individual weighting is dynamically adjusted daily according to the Index methodology. There is no actual portfolio of assets to which any person makes any investment or has any ownership interest.

Volatility

Volatility is the amount of price variation in an asset or security. High volatility means the price moves up and down in wide ranges over a period of time. Low volatility means that the price does not change as dramatically but rather changes at a more gradual pace.

 

Terms of Use

 

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The information provided herein was prepared for information purposes only by BNP Paribas (together with its affiliates, hereinafter “BNP Paribas”). The Content is indicative and should not be construed as an offer to buy or sell or a solicitation of offers to buy or sell any financial instrument. The Content is not intended to predict actual results, which may differ substantially from those reflected.

The BNP Paribas Multi Asset Diversified X Index (“the Index”) has been developed by BNP Paribas (the “Index Sponsor”) and will be calculated and rebalanced by BNP Paribas Financial Markets (the “Index Calculation Agent”). Notwithstanding the foregoing, conflicts of interest may exist where: (i) the Index Sponsor acts in multiple capacities with respect to the Index, including but not limited to functioning as index sponsor, licensing agent, and/or publisher; (ii) BNP Paribas’s Sales, Trading or Structuring desks launch tradable products linked to the performance of the Index. BNP Paribas has in place policies, information barriers and governance procedures that are designed to avoid or otherwise appropriately manage such conflicts of interest and ensure the independence and integrity of its indices.

The Index discussed within is the property of BNP Paribas and is protected by applicable intellectual property and other laws. The non-exclusive right to use this Index as underlying for any products is granted only upon completion of a license agreement with BNP Paribas. The Index Sponsor and its affiliates disclaim any responsibility for any unauthorized use of the Index Information by any third party.

Neither BNP Paribas nor any other party (including without limitation any calculation agents, third party licensors or data providers) makes any representation or warranty, express or implied, regarding the advisability of purchasing any products linked to the Index discussed within.

 

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