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A new study finds that asset managers are paying several times more than their peers for the same services—but why? And can it be fixed? Does it need to be?

This enlarged dataset has shown that pricing inconsistencies are not only widespread, but that there are even larger disparities out there in terms of what firms are paying

<ul>
<li aria-level="1"><span>For index data, some institutions are paying over 26 times (2632%) more than peers</span></li>
<li aria-level="1"><span>For ratings data, some institutions are paying almost 6 times more than peers</span></li>
<li aria-level="1"><span>For ESG data products, some institutions are also paying 6 times more than peers</span></li>
&#x...

Indices summarise the performance of asset classes, industry sectors, geographies, investment strategies and market segments across the financial services sector and are an indispensable foundation for product development, asset allocation and performance benchmarking. They might be used, for example, to summarise the UK equity market (via the FTSE 100 share index)

Substantive Research survey shows market participants are unprepared for imminent structural changes.

“What’s the biggest danger? That no one shows their cards until the day before and we’ve got chaos,” says Mike Carrodus of Substantive Research.

To solve the disconnect, shortly before MiFID II was implemented, the SEC issued a ‘no action’ letter, which acted as a ‘carve out’ that allowed European asset managers

Some managers pay as much as 13 times more than peers for index services, according to Substantive Research.

<ul>
<li aria-level="1"><span>For Pricing and Reference Data, some institutions can pay up to 10 times more than peers</span></li>
<li aria-level="1"><span>For Index Data, some institutions are paying over 13 times (1300%) more than peers</span></li>
<li aria-level="1"><span>For Ratings Data, some institutions are paying over 3 times more than peers </span>&lt...

The MiFID II regulations that came into effect in Europe in January 2018 unbundled trading and research and pushed almost all European asset managers