Video: John Jacobs on How Index Providers Compete on Price & Value

Video: John Jacobs on How Index Providers Compete on Price & Value By: John Jacobs
on 7/8/2014

John Jacobs, Executive Vice President, NASDAQ OMX Global Information Services, addresses the Importance of Value and Price in the Index Data Business in the third installment of his video series.


Transcript: I absolutely think indexers will compete more on price in the future. I think the bigger question is less about price and more on value. So as we’ve mentioned before, indexers, modern indexers are moving toward; full-service ones have to be multi-asset class and it has to be a scalable model, not just a technology scalable model, but a scalable model across every facet of what they do. You have to be nimble and lean when it comes to index administration, and operations and when it comes to rolling out your data in a variety of different formats. NASDAQ OMX, as part of the NASDAQ OMX Group, NASDAQ Indexes has always been a very efficiently built organization. Our goal is that the next 10,000 indexes, shouldn’t cost the same as the first 10,000 indexes. So we are continuing to roll out a superior set of indexes with an additional value proposition at the lowest possible cost. And cost matters to all the downstream users of indexes, so we are absolutely committed to being the low cost provider of indexes, data, components and performance to all the users of indexes downstream. So, I think, you’re going to see more and more, as you see in the environment with some of the ETF providers today, looking and switching benchmarks out to find ones that can give them, probably, better cost structures and certainty of the pricing of their products. We are absolutely going to continue to drive to be the low-cost index provider.


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