BSE adds S&P's Dow Jones Indices to Sensex, days after rating agency exits NSE

Feb 19 2013, 21:32 IST
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Pact permits S&P Dow Jones to have a fourth major operational hub to support clients globally. (Reuters) Pact permits S&P Dow Jones to have a fourth major operational hub to support clients globally. (Reuters)
SummaryPact permits S&P Dow Jones to have a fourth major operational hub to support clients globally.

Premier bourse BSE has roped in S&P Dow Jones Indices to use the Standard and Poor's (S&P) brand for Sensex and other indices such as BSE 200 and BSE 100, a week after expiry of the global financial major's pact with rival exchange NSE.

BSE benchmark Sensex will now be managed and operated by the new JV to be known as S&P BSE Sensex and effective today, all the BSE indices, including BSE 100 and BSE 200, will be co-branded "S&P".

Besides, these indices would join S&P Dow Jones Indices' other iconic financial market indicators such as the S&P 500, the Dow Jones Industrial Average, the S&P/TSX 60, and the S&P/ASX 200.

"Over the years, BSE was lagging behind making Sensex tradable. We expect our partnership with S&P Dow Jones Indices will help BSE raise the global acceptance of the Sensex and other index benchmarks, and help BSE achieve a leadership position in the index derivatives space," BSE MD and CEO Ashish Chauhan told reporters here today.

"We have entered into a long-term strategic partnership with S&P Dow Jones Indices and will share revenues on 50:50 basis," Chauhan said.

Established in 1875, 137 years ago, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.) is Asia's first Stock Exchange.

The partnership would allow S&P Dow Jones Indices to implement its South Asia growth strategy and also permit S&P Dow Jones Indices to have a fourth major operational hub by which to support clients globally after operations in Hong Kong, London and New York.

As of December 31, 2011, more than USD 1.5 trillion was directly indexed to S&P Dow Jones Indices' family of stock market indices.

The deal with BSE comes soon after the expiry of the licencing arrangement between India Index Services & Products (IISL), a joint venture of NSE and S&P-owned Crisil.

S&P, last week, ended its licencing agreement for the indices of the National Stock Exchange and the bourse can not now use S&P name for any of its products.

"This partnership expands BSE and S&P Dow Jones Indices' presence in India and in South Asia, while providing a springboard for our efforts in the ASEAN region with an important exchange partner that understands this critical segment of the market," S&P Dow Jones Indices Chief Executive Officer Alexander Matturri said.

S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies, Inc, is the world's largest, global resource for index-based concepts, data and research.

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