Financial data provider Thomson Reuters plans to launch 146 India-specific indices, out of which 73 will be sector-specific, according to a top company official.
The company recently launched a range of indices to help monitor global markets and to develop investment vehicles.
“We are talking to fund houses, exchange-traded funds and quant firms for selling these indices,” said Sunand Menon, managing director, Thomson Reuters Indices.
Thomson Reuters Indices covers 44 countries and 18 regions and has an overlay of global, regional and country indices. The 8,000 indices have been created using a proprietary liquidity filter that links ‘liquidity’ and ‘investability’. It selects constituent equities based on price, not volume, as traditional filters do, according to Menon.
The indices use the Thomson Reuters Business Classification system, the industry’s broadest classification system, which covers 71,000 public and 230,000 private companies worldwide. They range from broad market segments, such as the Thomson Reuters Global Energy Index, to very specific ones, such as the Thomson Reuters Emerging Markets Asia Telecommunications Index.
“In today’s market scenario, investment managers, quantitative analysts and other financial professionals need reliable, accurate and cost-effective indices more than ever. Thomson Reuters launched its indices business in response to clients’ needs. We believe the marketplace will benefit from our depth and breadth of coverage and our independence and brand,” said Menon.
Index services are more than $1-billion market with 40-50 per cent margins. It is growing at a compounded annual rate of 15 per cent. S&P, MSCI and Dow Jones are global leaders in these services. Recently, CME group acquired 90 per cent of Dow Jones’ namesake index business, valuing it at $675 million.
