Indices, Constituents and Weightings (ICW)

Summary

Thomson Reuters is one of the world’s largest sources of Index pricing, composition content and history, which is critical to most of our financial marketplace propositions and end client workflows. TR supports content from all developed and emerging exchange offerings from benchmarks to sector analysis and custom basket levels, along with a wide wholesale 3rd party product suite across all classic market vendors ( such as MSCI, FTSE, S&P / DJ and more ).

Features and Benefits

Real Time content is available for all major indices from exchange to vendor offerings. Available via desktop and market feed mechanisms.

Time series(end of day)content is available for circa 500k index entities from as far back as 1950, allowing benchmarking, valuation and charting performance activities.

Index composition and weightings available in both pre and post market basis for index benchmarks, sectors and third party offerings.

TR benefits from ultra compliant enablement systems that tailor client usage in line with exchange and market vendor expectations and mandates.

Additional Content Info

Pricing

Pricing shows the relative performance each day and attributed data items such as high, low, turnover, market value and alike are used for high level analysis. Index pricing is available in Real time basis, delayed by a factor (usually 15/20 mins from exchange mandates) and on an end of day , close of trading basis. Typically charged for access in Real Time basis (tick by tick on current days trading), but is usually free of fees to see ‘end of day’ trading summaries of closing prices and turnover statistics.

Index composition

Index Composition allows deeper insight into the makeup of the index, the constituents, their weights within the index, and related factors associated with the construction. This insight into the index construction is deemed premium content and is charged for access by clients completely independently from the pricing elements. Index providers may wish to know the client wanting access, their purpose and how many desks within the requestor will see the content, and this is due to its sensitive nature, Thomson Reuters then grants access rights upon confirmation from the index provider.

Sources

Thomson Reuters carry extensive content sourced from exchanges and third-party vendors, ranging from simple names and values, to complex index families and sub-series with multiple variants and accompanying datasets. These often require us to implement sophisticated permission and commercial based terms. There is a strict dependency chain for the distribution of third-party ICW content in products, due to the variable and increasingly onerous arrangements mandated by vendors for access to their content. It is critical to ensure that vendor contracts are not undertaken or amended, or ICW content added to products, without appropriate and agreed controls being in place in our processes and infrastructure. The Content Acquisition & Rights Management (CARM) team must always be engaged.

Coverage

Thomson Reuters provides wide scale coverage across Global exchanges, Third party offerings and bespoke index calculation services, as well as producing its own proprietary index content sets website, which provides users with all variants of index span to suit their workflow needs.

Primary exchange offerings

TR supports over 95% of Assets under management AUM via index vehicles, and covers all primary benchmarks and sectors for developed and growth & emerging exchanges. Deep composition analysis is available for these entities allowing clients to explore the index constituents, factors and weightings where applicable.

Secondary exchanges

TR ensures a growing and aggressive coverage of secondary and contributed exchange index offerings, to ensure benchmark and potentially, fund structures (based on Indices) are captured within our offering and allows performance tracking, charting and price discovery.

Third Party offerings

This is a particular strength, where as TR supports all major 3rd party institutional offerings. This is a particular growth area for 2015 also, where the depth and breadth of these offerings is being up scaled further to ensure full module and span. This captures the modules offered by MSCI, Russell Group, FTSE, Dow Jones and Standard and Poors. MSCI and Russell have recently undergone aggressive growth. With planning afoot to bolster further the FTSE, DJ and S&P content sets in early 2015.

Classfication Schemes

Indices are typically formed as part of industrial classification schemes adopted by exchanges / vendors to classify composition components. This sees constituent quotes classified into sectors and segments in accordance with strict classification criteria, using boundaries such as market value thresholds, ownership rights across share numbers, company investment strategies and liquidity. The market now has industry-standard classifications across major providers that add value and reputation to indices in that they are constructed and follow successful and established schemes. Major classification includes GICS (Global Industry Classification Standard) by MSCI and S&P; ICB (Industry Classification Benchmark) by FTSE; TRBC (Thomson Reuters Business Classification) by Thomson Reuters.

These classification schemes allow structuring and understanding of the selection criteria used to form the index entity by exchanges / vendors and allow cross market comparison of index assets using the same scheme logic. TR also offers, via our deep referential and logical entity mastering the ability to reclassify index components across Schemes to derive performance and structuring where required.

Product Delivery

Thomson Reuters Eikon

Thomson Reuters Eikon delivers a powerful combination of information,
analytics and exclusive news on financial markets – delivered in an elegant
and intuitive desktop and mobile interface.

CSV, HTMLDesktop, ExcelDaily, Monthly, Real-Time, Inter-day

Thomson Reuters Datascope

One single solution where top down macro research meets bottom up analysis
for greater insights and profits. Datastream Provides robust analytics tools,
intuitive charting application as well as seamless MS®Office integration.

CSV, HTMLWebsite, Desktop, Excel15-Minute, Daily, Monthly, Weekly, Annually

Thomson Reuters QA Direct

A deployed data management solution, QA Direct provides seamless access to
raw quantitative analytics content via Microsoft SQL or Oracle. Coverage
includes global equity, equity index, fixed income and CDS pricing, as well
as index constituents, fundamentals, estimates, ownership, economics and risk
models. QAD Provides access to the comprehensive Datastream indices coverage
from a variety of sources such as MSCI, FTSE, S&P, Russell and much more.

CSV, HTMLAPI, DesktopVaries

Thomson Reuters Knowledge Direct

Knowledge Direct API uses industry standard protocols (SOAP and XML) to
deliver Thomson Reuters content for inclusion within internal or external
client applications. Using XML request/response, clients can access a
comprehensive offering of company and economic Data (fundamentals, estimates,
significant developments, etc.), market data, news and quotes and the
associated capabilities, including charts, search and timeseries.

CSV, HTMLFTP, APIEvent-Based, On Demand

Thomson Reuters Datascope

Thomson Reuters DataScope Equities offers a solution to meet subscribers
equities pricing and reference data needs across your Enterprise. We provide
class-leading coverage of equity instruments for over 400,000 securities from
over 180 exchanges in more than 80 countries. End-of-day pricing for
equities, derivatives and money/FX with more than 20 years of price history
is available, alongside global terms and conditions. End-of-day pricing for
Equities, Derivatives, and Money/FX, across a wide range of exchanges from
both developed and emerging markets in Europe, the Middle East, Africa, North
America, Latin America, Asia and the Pacific Rim.

CSV, HTMLFTP, ExcelDaily, Event-Based, End of Day