Indices come in many varieties. Generated by computer algorithms, they aim to provide investors and the general public with a market snapshot. While useful, the inner workings of most indices oftentimes remains a mystery. Shrouded in near-secrecy, market indices may reinforce the notion that statistics is akin to a dark art that peddles iffy truths.
Recognising the shortcomings of many – if not most – market indices, STOXX set out to produce a more transparent set of indices, leveraging the power of hard facts and verifiable data. A wholly-owned subsidiary of the Deutsche Börse Group, STOXX provides integrated indices for the world’s major markets. The Zurich-based company maintains a roster of no less than 7,000 indices and is the marketing agent for the German DAX and Swiss SMI indices.
The company was formed in 1997 as a joint venture between Deutsche Börse, SIX Swiss Exchange, and Dow Jones. The American company left the joint venture in 2009. Earlier this year Deutsche Börse Group became STOXX’s sole owner after acquiring the remaining 49.9% of the outstanding shares from SIX.
STOXX indices are used not only as underlyings for financial products, such as ETFs, futures and options and structured products but also for risk and performance measurement. STOXX has always been at the forefront of market developments and has continuously expanded its portfolio of innovative indices. STOXX now operates globally across all asset classes.
The CFI.co judging panel finds that STOXX has become peerless when it comes to understanding markets and their behaviour. By providing a comprehensive set of transparent benchmarks to the industry, STOXX has made itself indispensable. As such, the CFI.co judges harbour no doubts that STOXX is the rightful owner of the 2015 Most Innovative Index Provider Award.