Banks and index providers mixing and matching strategy and benchmark indexes
Traditional index providers that focused on the creation of benchmark indexes and banks that focused more on the creation of strategy indexes are now crossing over into each other’s territory. Magda Ali reports
Banks that are typically known for having larger customer groups in the structured products market are emerging as one of the biggest competitors for third-party index providers. While the total number of indexes launched has increased dramatically, many providers say this is related to the boom the industry is experiencing in the rise of exchange-traded funds and structured products in the form of notes that track different indexes based on different themes and trends.
"Banks have started to
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