FTSE Russell Confirms Compliance with IOSCO Principles, Noting Enhancements
— Annual declaration reaffirms support of IOSCO framework introduced in July 2013
— Statement outlines firm’s commitment to governance, quality and accountability
— Updates since 2015 reflect further integration of Russell US Indexes and addition of the FTSE MTS Indexes
FTSE Russell, a leading global index provider, today announced that it has published its annual Statement of Compliance with recommendations made by the International Organization of Securities Commissions (IOSCO), as laid out in the Principles for Financial Benchmarks and published in July 2013 (the IOSCO Principles). As with the previous statements, FTSE Russell has sought independent assurance from KPMG LLP.
The IOSCO Principles aim to promote the reliability of benchmarks addressing issues surrounding governance; the quality of benchmark design and methodology; and the accountability of the benchmark administrator. FTSE Russell is committed to leading best global practice standards and FTSE published its first statement in July 2014. Today’s announcement confirms the compliance of the combined FTSE Russell entity.
Notable recent enhancements to FTSE Russell’s governance framework highlighted in this year’s statement include the addition of the FTSE MTS Indexes. This set of benchmarks for the European sovereign bond market, acquired by FTSE TMX in April 2014, has been integrated within FTSE Russell’s index calculation infrastructure and governance framework.
In addition, the statement reflects further successful integration of the Russell US Indexes onto the FTSE Russell operating platform. Notable steps include migration onto a shared calculation infrastructure, further development of a shared control framework, a combined client services function, further alignment of index and data management controls and the launch of a new combined FTSE Russell website.
This confirmation highlights FTSE Russell’s maintenance of strong governance controls, which benefit from robust procedures and experienced internal working groups, supported by external advisory committees. This statement also underpins the quality of FTSE Russell benchmarks and gives index users confidence that they accurately reflect the value of the asset classes being measured.
Mark Makepeace, CEO of FTSE Russell, said:
“We are committed to promoting the highest possible governance standards within our industry and fully endorse and embrace the IOSCO Principles. In addition, the release of our annual statement which includes enhancements we have made over the last year illustrates our commitment to continuous improvement and strengthening of our governance, controls and transparency.”
For more information visit: http://www.ftse.com/products/indices/iosco
– Ends –
For further information:
Lucie Holloway or Ed Clark
Mark Benhard or Tim Benedict +44 (0) 20 7797 1222
+1 212 314 1199
Hong Kong: Fennie Wong
Sydney: Laura McCrackle +852 2164 3267
+61 2 9293 2867
Notes to editors:
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $10 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com
© 2016 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.