The AEX Index celebrates its fortieth anniversary

Exactly forty years ago today the Amsterdam Exchange Index or AX Index was established. Born as the European Options Exchange (EOE), AX Index was the brainchild of then Option Exchange Director Djerk Westerderp and grew to become the largest options exchange with 25 major exchange companies.

The idea came on a train to Belgium or Luxembourg, son Stan Westerderp recalled. According to Westerderp, his father wanted to create an index that would allow options trading. “That idea came from America,” he says. At that time, they initially compiled a code of twelve names. Some of them are still known in AEX; Names like Heineken, Shell, Unilever, Philips.’

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The European Options Exchange was launched in 1983, and started at a hundred guilders. According to Westerderp, it was a very quick success, and it made it possible to trade an index on a daily basis. “But because a code is generated every fifteen seconds of every day,” Westerderp continues. ‘That way you can follow the development, and the level of the index is often said to be a kind of barometer of the Dutch economy.’

Unexpected

Stan Westerterp says his father, Stan Westerterp, had high hopes that this would be a successful move because he was inspired by the big American funds like S&P and Dow Jones. “It was pretty revolutionary at the time,” he continues. It was one of the first codes launched in Europe. The Germans and the French came later, so it was also nice for the Americans to see how things were going on the other side of the pond.

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But, Westerderp emphasizes, the emphasis has shifted to international indices in recent years. For example, the Eurostocks 50 has become very important to Europe, and the MSCI World has a global focus. ‘For professional investors, the AEX index is less relevant.’

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