Critics and competitors are claiming that the index changes—designed to improve MSCI's coverage of emerging market small-cap stocks—will force buy-side firms that follow the indexes to make major changes to their portfolios.
A recent research report from HSBC's equity quantitative research team subtitled "Time to reset benchmarks?" warned that the changes to MSCI's indexes "are likely to result in significant turnover and … considerable cost to passive portfolio managers."
While the HSBC team
Anthony and James delve into how the systematic internalizer regime is shaping up, and then examine the regtech sector.Subscribe to Weekly Wrap emails