We are strong supporters of good governance in indexing and benchmarking. We believe that all indices should be properly administered.
They should be:
- Well-constructed in order to ensure they represent a well-defined economic interest;
- Built with input from index product issuers and product investors;
- Administered according to properly constructed, transparent methodologies;
- Subject to careful controls on the exercise of discretion within the application of methodologies;
- Subject to independent oversight, with index user involvement in that oversight;
- Appropriately managed to avoid the various conflicts of interest that can arise within benchmark administration;
- Assessed as compliant with the IOSCO Principles for Financial Benchmarks, and any relevant regulation.