Markit Indices Confirms Compliance with Iosco Principles
Markit (Nasdaq: MRKT), a leading global diversified provider of financial information services, today confirmed that it will administer its benchmarks in compliance with the International Organization of Securities Commissions (Iosco) final report on principles for Financial Benchmarks.
The objective of the Iosco principles is to create an overarching framework for benchmarks used in financial markets that should be implemented by benchmark administrators and submitters. These principles are intended to promote the reliability of benchmark determinations and address benchmark governance, quality and accountability mechanisms.
Markit will administer its benchmarks in compliance with the principles by the end of 2014, focusing on transparency, controls, governance and conflicts of interest management.
Armins Rusis, managing director and cohead of Information at Markit, said: “Markit fully supports the Iosco principles and evolving regulations regarding benchmark administration, which are consistent with the objectivity, transparency and governance by which Markit has always sought to administer its indices and underscores their independence and objectivity. Our new compliance framework will help our customers and contributors to efficiently and comprehensively adhere to the Iosco requirements. After extensive consultation with customers, we intend to apply the same approach to our custom index business which provides customers with indices of their own design.”
About Markit indices
Markit provides leading global index solutions covering cash and synthetic fixed income, securitised products and loans. We offer a comprehensive set of benchmark and liquid indices including index related services enabling customers to meet their custom index requirements. Our indices are used by investment banks, asset managers, hedge funds and insurance companies for benchmarking, risk management and valuation, and as the basis for a wide range of financial products including exchange traded funds, index funds, structured products and derivatives. Markit calculates over 14,000 indices each day, covering over $10 trillion notional outstanding of swaps. Markit indices power over 150 fixed income ETFs with AUM in excess of $80 billion.
Markit has determined that the following products fall within scope of the “benchmark” definition under the Iosco Principles: (i) Markit iBoxx bond indices, (ii) the excess return and total return versions of the Markit CDX and iTraxx credit indices, and (iii) certain securitised product indices. While Markit has determined that certain of our index offerings, such as our CDX and iTraxx indices, are not benchmarks, we intend to administer these indices in alignment with our benchmark compliance framework and the Iosco Principles. A more detailed explanation of Markit’s benchmarks classification can be found here.
For more information about Markit’s indices, please visit: www.markit.com/product/indices.
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