S&P Dow Jones Indices, Korea Exchange Signed Contract

The Korea Exchange announced on December 8 that it signed a contract with S&P Dow Jones Indices in New York on December 7.

According to the contract, S&P is to act as a proxy from 2017 to 2019 when non-South Korean organizations located in the Americas and the like are to conclude contracts to use the Korea Exchange’s indices and be engaged in marketing activities such as index licensing agreements with foreign index users.

The contract is also for mutual cooperation between S&P and the Korea Exchange for the establishment of index systems in the latter. According to it, S&P is to send its senior IT engineers to the Korea Exchange within this month for the purpose of technology transfer and development assistance regarding index system establishment. In addition, a custom index development project is to be launched next year so that indices can be calculated by the methods suggested by users and based on S&P’s index development systems. The two sides are going to work on smart beta indices next year, too.

“This commercial contract is expected to lead to an increase in the use of the Korea Exchange’s indices abroad and its brand awareness,” the Korea Exchange explained.