The index began trading on Thursday and carries the symbol QxX.LS. It is based on a sampling of insured Americans over the age of 65, and the initial index has a reference pool of 46,290 unidentified people, Goldman Sachs said in its announcement.
The index is independently tracked monthly, providing real-time publication of mortality information. The results will be periodically verified by a third party.
Published index rules and trading calculators are available at http://www.qxx-index.com .
Goldman said the holders of longevity and mortality risks – such as insurance companies, pensions, and annuity providers – until now have been without a mechanism to manage their exposure in the capital markets.
“We think that hedge funds, money managers, insurance companies, and pensions will be interested in this index,” Michael DuVally, a spokesman for Goldman, told Reuters.