The London Stock Exchange’s FTSE Group has launched its first range of volatility indices that will allow investors to hedge against sharp market fluctuations, as the exchange looks to expand its derivatives and intellectual property franchise.

The index provider, which became wholly owned by the LSE in 2011, today announced the launch of the FTSE Implied Volatility Index Series, an end-of-day series that measures the implied volatility of the FTSE 100 and FTSE MIB indices, the benchmark indices for the UK and Italian stock markets.