Around three years ago, we held a closed-door forum for leaders in the custody space, at their request, to discuss what was fast becoming a significant issue across the segment: the rising cost and complexity of licensing for benchmark data. The overarching theme heard throughout this gathering was that benchmark data fees had turned into a significant portion of the cost to provide analytic services, yet banks had no control or input on the benchmark decision making process for clients.
These trends have not abated; in fact they have increased. This has caused a number of organizations to take action. In the December Performance Perspectives Newsletter we include a special interview with representatives from BNY Mellon, State Street, and Northern Trust, each walk through their perspective on the topic and the changes being implemented. As part of these group discussions, a common approach of increased transparency was agreed upon, which led to the formation of the following principles each have agreed to adopt and implement over time, henceforth called: Custodian Guidelines for Transparency in Benchmark Cost
Download your FREE copy of the newsletter here: December 2014