Custom Indices

MARKIT CUSTOM INDEX AND ETF MANAGEMENT

Markit’s Custom Equity Index Management service provides financial institutions withan outsourced independent solution to manage, calculate, publish and redistribute their customised indices.

As indices get ever more complex and institutions manage a far greater volume of customised indices across multiple time zones, Markit Equity Custom Index Management offers an individually tailored service in three broad areas:

1. Markit White Label - The outsourcing, management and publication of clients’ existing customised equity indices and ETFs to exchanges, data vendors and to clients’ systems.
2. Markit Branded - Creation of indices or ETFs using Markit’s unique content, including dividend forecasts, CDS and Loan Data.
3. Markit Co-Branded - Co-Branding and dissemination of indices using client’s’ unique content and Markit’s index expertise, delivery channels and client base.

Markit is already a recognised index calculation agent in the derivatives and structured finance space for CDS Indices (CDX & ITRAXX), Structured Finance Indices (ABX & CMBX Indices) and synthetic indices (LEVX.) Markit Equity Custom Index Management is an extension and development of these services to cover equity and cross-asset indices.

KEY STRENGTHS

Independence

Markit is an independent third party for the calculation of indices. Markit is index calculation “agnostic” and can apply any required calculation to indices.

Flexibility

Markit can service clients in Europe, the U.S. and the Far-East. Indices are run in the appropriate time zone to ensure they are ready for market open and Markit ensures the appropriate automated and manual validation processes are put in place as required. All clients are assigned a dedicated technical and commercial account manager.

Delivery & Publication

Markit can deliver indices to existing clients via its systems via its incumbent XML, Exchanges (Deutsche Boerse, Euronext, LSE, and Borsa Italiana) and established data vendors on both an end-of-day and real-time basis as required.

Reach

Markit counts 16 of the top global investment banks as strategic business partners and around 1,000 clients globally including investment banks, hedge funds, asset managers, exchanges and regulators with whom Markit can publish custom index data.

Next Steps

By their nature, all Custom Index Management clients’ requirements can vary and be customised. Markit is happy to arrange an initial meeting to overview capabilities and strengths in this complex area and overview how Markit can provide a customised solution to match our clients’ needs.

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