What is the NYSE Arca Major Market Index? Definition and examples

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The NYSE’s website has a webpage with information on the Major Market Index. (Image adapted from www.nyse.com/quote/index/XMI, dated 5th April, 2019.)

The NYSE Arca Major Market Index consists of twenty blue-chip industrial US stocks. NYSE and DJIA stand for New York Stock Exchange and Dow Jones Industrial Average respectively. Options and futures traders base their operations on this index.

We also call it the MMI or XMI. Its previous name was the AMEX Major Market Index.

The NYSE Arca Major Market Index has a misleading name. In spite of its name, none of the Index’ stocks make up the index trade on NYSE Arca exchange. All of them, except for Microsoft Corporation, trade on the NYSE.

Index compositions and corporate actions can be accessed from NYSE Market Data at www.nyse.com/market-data/indices.

XMI stocks

Below is a list of the twenty Blue Chip industrial stocks that make up the NYSE Arca Major Market Index.

  • 3M Company. Symbol: MMM.
  • American Express Company. Symbol: AXP.
  • Chevron Corporation. Symbol: CVX.
  • DuPont de Nemours, Inc. Symbol: DD.
  • Exxon Mobil Corporation. Symbol: XOM.
  • General Electric Company. Symbol: GE.
  • Hewlett-Packard Company. Symbol: HPQ.
  • International Business Machines Corporation. Symbol: IBM.
  • Johnson & Johnson. Symbol: NJN.
  • JPMorgan Chase & Co. Symbol: JPM.
  • McDonald’s Corp. Symbol: MCD.
  • Merck & Co. Inc. Symbol: MRK.
  • Microsoft Corporation. Symbol: MSFT.
  • The Boeing Company. Symbol: BA.
  • The Coca-Cola Company. Symbol: KO.
  • Dow Inc. Symbol: DOW.
  • The Procter & Gamble Company. Symbol: PG.
  • The Walt Disney Company. Symbol: DIS.
  • Walmart Inc. Symbol: WMT.
  • Wells Fargo & Company. Symbol: WFC.

What is NYSE Arca?

NYSE Arca is an exchange in which people, businesses, and other entities trade both options and stocks. Arca is short for Archipelago.

The Intercontinental Exchanges, which is based in Chicago, owns NYSE Arca.

According to Investopedia, it is “the world’s leading ETF exchange in terms of volume and listings”.

NYSE Arca Major Market Index started in 1983

The NYSE Arca Major Market Index started in April 29th, 1983. On that date, the base price was set at 200.00, its base value was also 200.00.

XMI’s futures are traded on the Chicago Board of Trade. Options, on the other hand, are traded on either Amex or Euronext.

A futures contract is a contract to exchange a specific security for a price that traders determine on the day they create the contract. It is for delivery and payment on a future date.

What are index and market index?

We use the word ‘index‘ when talking about economic or financial data. It reflects the quanity or price of something compared with a standard value.

A market index comprises numbers that represent weighted values of various components. In the world of finance, the components may be commodities, stocks, bonds, or product prices.