Published On: Tue, Nov 4th, 2014

S&P Dow Jones Indices, Korea Exchange Announce Agreement On Index Commercial Licensing And New Equity Indices Launch

Kyungsoo Choi, Chairman & CEO, KRX -

Kyungsoo Choi, Chairman & CEO, KRX –

S&P Dow Jones Indices, one of the world’s leading providers of financial market indices, and the Korea Exchange (“KRX”) on 3 November announced an agreement for S&P DJI to manage the commercial licensing of all existing KRX indices including the KOSPI 200, the premier gauge of equity market performance in South Korea, to potential clients worldwide. The two parties will also work together to launch a new series of equity indices in the market. The agreement was signed today at S&P Dow Jones Indices’ world headquarters in New York, New York.

According to the agreement, the two parties will leverage S&P DJI’s rich experience in global index sales and marketing to license and promote the KRX indices to overseas investors.

The KRX and S&P DJI also plan to launch the following new indices for the Korean market:
1. An intrinsic value version of the KOSPI 200 based upon the GIVI™ (“Global Intrinsic Value Index”) methodology. GIVI is a rules based methodology designed to deliver both lower volatility and performance weighted by intrinsic stock value rather than by traditional market capitalization.
2. A new family of Korea equity style indices.
3. GICS® based local sector indices to potentially serve as the basis for derivatives, ETFs, funds, and OTC products in the Korean market. The Global Industry Classification Standard (GICS) was developed by S&P DJI and MSCI, and aims to enhance the investment research and management process for financial professionals worldwide by assigning classifications based on a company’s principal business activity.

“S&P Dow Jones Indices is very excited to expand our relationship with the KRX via the licensing arrangement and the development of greater index-based solutions and benchmarking tools that will allow investors inside and out of Korea to access its tremendous growth story,” says Alex Matturri, CEO of S&P Dow Jones Indices. “Today’s announcement and signing ceremony symbolizes another exciting step in the growing collaboration between our two great companies.”

“Our years of collaboration with S&P Dow Jones Indices have proven to be mutually beneficial,” says Kyoungsoo Choi, Chairman and CEO of Korea Exchange. “By leveraging S&P DJI’s established index development caliber and global reach, we are confident that we will further strengthen our product offerings and market presence in both domestic and international markets. We look forward to deepening our constructive and fruitful relationship with S&P DJI on both the commercial and R&D fronts.”

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