Can Alternative Index Providers Disrupt Index Inertia?

Can Alternative Index Providers Disrupt Index Inertia? Updated: 4/16/2014

The following article was written by Faye Kilburn and published in Inside Market Data on April 7, 2014.

Though there are almost a hundred mainstream index providers in the industry today, the market remains dominated by a small and elite group of providers—MSCI, S&P Dow Jones Indices, Russell Indexes and FTSE Group. With the industry clamoring for change and innovation, Faye Kilburn examines the barriers to greater adoption of alternative providers. The fees charged by index providers have risen sharply over recent years, partly due to the increase in complexity of indexes for benchmarking, and partly due to the rise of exchange-traded funds. These hikes, combined with the proliferation of new license types covering areas such as non-display usage, have led many firms to question whether the current cost of indexes is at all reflective of their value.

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