S&P Dow Jones Indices (S&P DJI) has signed a landmark agreement with the Lima Stock Exchange (BVL) to license, distribute, and govern all of the Peruvian stock market indices.
This above operation was carried out on Sep. 16 as part of S&P DJI’s strategic growth plan to expand throughout Latin America, thus it has been authorized to manage a new version of the General Index of the Lima-headquartered stock market BVL.
Therefore, S&P DJI, which is one of the world's leading providers of financial market indices, will be responsible for the marketing and commercial licensing of the BVL indices.
Furthermore, the agreement allows S&P DJI to eventually calculate all of the BVL indices, and to jointly create new indices with the Exchange to meet the evolving needs of investors inside and out of Peru.
Indeed, each of these indices will be designed with an eye toward being liquid enough to serve as the basis for potential investment products.
"Interest in passive investing through index-based investment products is just beginning to take shape in Latin America," says Alex Matturri, CEO of S&P Dow Jones Indices.
He added, "By aligning with one of the premier exchanges in Latin America, the BVL, international and domestic investors will have the tools necessary to measure and potentially access opportunities in Peru, a country which has witnessed the fastest economic growth in South America over the past decade."
In turn, Francis Stenning, CEO of the Lima Stock Exchange hailed the strategic alliance with S&P DJI as it will generate greater worldwide exposure of our stock market. “In addition to measuring Peruvian market behavior, this agreement should make the BVL a source of international investment," he said.
Likewise, the top BVL executive noted that a new blue chip index will be created for the local market, which shall include leading companies in terms of capitalization and liquidity.
The BVL will transition index calculation of its indices to S&P DJI over time to ensure a smooth transition for existing clients. S&P DJI will be responsible for the commercial licensing of the indices, as well as the end-of-day data. In addition, all BVL indices will be co-branded "S&P".
(END) NDP/DLG/LOG