Proprietary and custom indices have made up a significant proportion of the US structured product market. A key feature of this sector of the market is that new indices can be introduced to reflect new market trends or innovative, popular or successful strategies.
Last year, the ‘proprietary & custom indexes’ sector had its highest level of market share by issuance over the past 10 years, according to SRP data. It now makes up 5.87% of the US market, with this trend broadly continuing into 2019. As a consequence of this trend such indices have attracted some regulatory attention from both the SEC and Finra as these bodies seek to protect investors from excessive complexity and high implicit fees. A common theme in these proprietary indic
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