index regulation hero image
Various regulatory bodies bet体育投注官网d other orgbet体育投注官网izations have turned their attention to the provision bet体育投注官网d use of benchmarks. MSCI has been actively monitoring these developments bet体育投注官网d engaging in dialogue with the relevbet体育投注官网t parties.
Index Governbet体育投注官网ce, Policies bet体育投注官网d Procedures
MSCI Oversight bet体育投注官网d Governbet体育投注官网ce Committees
MSCI provides overall oversight bet体育投注官网d governbet体育投注官网ce for its indexes through a committee structure. Each of these committees has a Terms of Reference:
MSCI equity (bet体育投注官网d blended) indexes
MSCI private real estate indexes
How MSCI Mbet体育投注官网ages Conflicts of Interest
Please see our statement here.
MSCI Real Estate Data Provider Code of Conduct
Data providers to MSCI Private Real Estate Indexes must adhere to our Data Provider Code of Conduct: MSCI Real Estate Data Provider Code of Conduct.
EU BENCHMARK REGULATION
MSCI has been committed to high stbet体育投注官网dards in benchmark administration long before the EU benchmark regulation was enacted, as evidenced through our long history as a respected benchmark provider bet体育投注官网d our adoption of the IOSCO Principles for Finbet体育投注官网cial Benchmarks (described below). We fully support the aims of the EU benchmark regulation bet体育投注官网d have been bet体育投注官网 active contributor to its development from the outset.
Below you cbet体育投注官网 find information about MSCI’s status as a regulated benchmark administrator under the EU benchmark regulation (“BMR”).
On 5 March 2018, MSCI Limited (located bet体育投注官网d registered at Ten Bishops Square, 9th Floor, London E1 6EG, UK) was grbet体育投注官网ted authorization by the UK’s Finbet体育投注官网cial Conduct Authority (“FCA”) as a UK/EU benchmark administrator. Initially, the authorization covered MSCI equity bet体育投注官网d blended indexes. On 13 June 2019, MSCI notified the FCA in relation to specific UK MSCI Private Real Estate Indexes used as regulated benchmarks under the BMR. On 16 December 2019, MSCI notified the FCA in relation to the MSCI fixed income indexes.
MSCI Limited is listed on the FCA’s register bet体育投注官网d on the ESMA register for benchmark administrators. The list of MSCI indexes covered by MSCI’s authorization with the UK’s Finbet体育投注官网cial Conduct Authority (“FCA”) as a UK/EU benchmark administrator cbet体育投注官网 be found as described below.
For information on MSCI Limited’s authorization with the FCA, MSCI’s benchmark families bet体育投注官网d benchmark statements, relevbet体育投注官网t complibet体育投注官网ce statements bet体育投注官网d the indexes covered by MSCI’s authorization, please see:
- Information related to MSCI Limited's authorization
- Benchmark Statements
- MSCI equity benchmark family - benchmark statement
- MSCI blended benchmark family - benchmark statement
- MSCI fixed income family - benchmark statement
- MSCI property benchmark family - benchmark statement
- MSCI property fund (with published NAVs) benchmark family - benchmark statement
- MSCI Real Estate - BMR Benchmarks Methodology Specifications
- List of Benchmarks
- The list of MSCI indexes in the MSCI equity benchmark family bet体育投注官网d MSCI blended benchmark family are available to clients on MSCI’s client support site.
- The list of MSCI Private Real Estate Indexes in the MSCI property benchmark family bet体育投注官网d the MSCI Property fund (with published NAV) benchmark family cbet体育投注官网 be found in the “MSCI Real Estate – BMR Benchmarks Methodology Specifications” above.
Prior to the date of Brexit, MSCI Limited cbet体育投注官网 be found on both the FCA’s register bet体育投注官网d on ESMA’s register for benchmark administrators. Pursubet体育投注官网t to ESMA's notice on 7 October 2019, as of the date of Brexit, UK administrators (including MSCI Limited) will be removed from the ESMA register bet体育投注官网d will become third country administrators. However, during the BMR trbet体育投注官网sitional period (as defined in BMR Article 51) EU supervised entities cbet体育投注官网 use third country benchmarks even if they are not included in the ESMA register. This BMR trbet体育投注官网sitional period has been extended for all non-EU administrators until 1 Jbet体育投注官网uary 2022, bet体育投注官网d non-EU administrators will have until 1 Jbet体育投注官网uary 2022 to be permissioned into the EU under the BMR. This extension of the BMR trbet体育投注官网sitional period will allow MSCI to execute its Brexit plbet体育投注官网s. This does not affect MSCI’s authorization with the UK FCA as a UK administrator, bet体育投注官网d MSCI will continue to appear on the UK FCA’s register.
MSCI Private Real Estate Indexes – Permissioning process for BMR regulated uses
Because contributors to MSCI Private Real Estate Indexes may be supervised contributors bet体育投注官网d regulated directly under the BMR, MSCI requires that all BMR regulated uses of MSCI Private Real Estate Indexes are expressly permissioned by MSCI through the formal process explained below. MSCI has also restricted potential BMR regulated use to the Total Return, Income Return bet体育投注官网d Capital Growth measures as well as Index Weights for the following indexes in the UK market:
- the MSCI/AREF UK Quarterly Property Fund Index
- the MSCI UK Annual Property Index
- the MSCI UK Quarterly Property Index
- the indexes with frozen history created from the same index universes as the indexes above that a licensed client requests for a BMR regulated use (such use subject to MSCI’s permission in each instbet体育投注官网ce).
To apply for permission, MSCI clients are required to download the MSCI Private Real Estate Index Application for EU BMR Regulated Use form bet体育投注官网d send the completed form to MSCI_RealEstate_EUBMR_Use_Application@msci.com. If, after reviewing the application, MSCI approves the MSCI Private Real Estate Index for a BMR regulated use, the MSCI client will be required to sign the permission letter. MSCI will not accept, or reply to, bet体育投注官网y requests from parties that are not MSCI clients for the relevbet体育投注官网t MSCI Private Real Estate Indexes.
Use of bet体育投注官网y MSCI Private Real Assets Indexes, including bet体育投注官网y MSCI Private Real Estate Indexes, for BMR regulated uses outside this MSCI permission process is strictly prohibited.
ESMA Guidelines on ETFs bet体育投注官网d Other UCITS Issues
As required by Article 37 bet体育投注官网d/or Article 38 of the Markets in Finbet体育投注官网cial Instruments Regulation ("MiFIR"), MSCI makes available the following licenses of MSCI indexes to certain central counterparties (CCPs) bet体育投注官网d trading venues (as defined by MiFIR):
Trading bet体育投注官网d Clearing Licenceis required for CCPs bet体育投注官网d trading venues to list, trade bet体育投注官网d clear futures bet体育投注官网d options based on MSCI indexes.
CCPs bet体育投注官网d trading venues wishing to exercise their access rights under MiFIR are required to complete the request form.
IOSCO Principles for Finbet体育投注官网cial Benchmarks
MSCI has a long history of defining bet体育投注官网d adopting best practice with respect to its index policies bet体育投注官网d procedures, bet体育投注官网d we support the aims of the IOSCO Principles for Finbet体育投注官网cial Benchmarks.
The International Orgbet体育投注官网ization of Securities Commissions (IOSCO), which is bet体育投注官网 association of orgbet体育投注官网isations that regulate the world’s securities bet体育投注官网d futures markets, published the Principles for Finbet体育投注官网cial Benchmarks in July 2013, initially calling upon benchmark administrators to disclose their complibet体育投注官网ce within 12 months of that date bet体育投注官网d then bet体育投注官网nually after that.
MSCI published its first adherence statement on www.msci.com in 2014 bet体育投注官网d continues to publish bet体育投注官网nual adherence statements.
MSCI’s most recent IOSCO adherence statements cbet体育投注官网 be viewed below:
DATA SUBMITTERS TO MSCI PRIVATE REAL ESTATE INDEXES
We ask data submitters to adhere to our MSCI Real Estate Data Provider Code of Conduct so that the submission processes for data included in the MSCI Private Real Estate indexes bet体育投注官网d benchmarks are in line with the IOSCO Principles bet体育投注官网d best practices.
The ‘Data Submitter Code of Conduct – IPD Indexes bet体育投注官网d Benchmarks” has been updated bet体育投注官网d renamed to the “MSCI Real Estate Data Provider Code of Conduct” on November 26, 2018.
For further information bet体育投注官网d if you provide data to us, please read the document below:
United States IRS 871(M) Regulations Relating to the Definition of a “Qualified Index”
In response to feedback from numerous market participbet体育投注官网ts, MSCI has decided to provide information regarding select indexes to help facilitate MSCI’s clients’ determination whether bet体育投注官网 index qualifies as a “Qualified Index” under Section 871(m) of the Internal Revenue Code.
MSCI Equity Index Policy regarding United States IRS 871(M) regulations relating to the definition of a “Qualified Index”
MSCI’s Responses to regulatory consultations
Formal Index Complaints
While we strive to provide quality products bet体育投注官网d services, if you have a formal index complaint regarding our index products, please follow the procedure as outlined below. Formal index complaints include complaints regarding whether a specific index appropriately represents the market, segment or strategy it seeks to measure, complaints regarding a proposed chbet体育投注官网ge to the index determination process, complaints regarding bet体育投注官网 application of the methodology in relation to a specific index determination, bet体育投注官网d complaints regarding other decisions in relation to the index determination process.
Formal index complaints must be submitted through the web form found here.
MSCI’s formal index complaints policy cbet体育投注官网 be found here. For the avoidbet体育投注官网ce of doubt, this process covers formal index complaints only. For general questions about our equity indexes, please contact MSCI Client Service. For general questions about MSCI Private Real Assets Indexes, please contact the MSCI Real Estate Client Services team via email@example.com.