Our Decisions Driven By Openness of Market, Says S&P Dow Jones Indices CEO

The video discusses the role of an index compiler, focusing on market openness rather than politics. It highlights growth potential in the Middle East, particularly in Saudi Arabia, and the importance of local market indices. The regulatory environment is explored, noting cooperation with exchanges and the potential for a robust ETF marketplace. Industry trends show increasing power and responsibility for index providers, with potential consolidation due to regulatory costs. The strategy involves partnering with exchanges for commercial transactions rather than acquisitions.

What is the primary focus of the index compiler when assessing markets in the Middle East?

• Technological advancement

• Cultural factors

• Political stability

• Market openness

Why is Saudi Arabia considered significant for regional indices?

• It has the highest GDP in the region.

• It has the largest population in the region.

• It is the most technologically advanced.

• It is one of the last big markets opening up.

What is the potential benefit of developing a robust ETF marketplace in the region?

• Increased political influence

• Enhanced capital formation

• Higher cultural integration

• Improved technological infrastructure

What is a key strategy for the index provider to grow its business?

• Focusing solely on local markets

• Partnering with exchanges

• Reducing regulatory compliance

• Acquiring small index providers

What challenge might smaller index providers face due to increased regulation?

• Lack of market access

• High costs of global regulation

• Decreased demand for indices

• Inability to innovate