— 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
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Notes to editors:
FTSE Russell is a leading global provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. More than $15 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 investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
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 index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by the 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.
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