ISS has also established a policy that it will not provide proxy research or other analytical research on Deutsche Börse.
Deutsche Börse has completed the acquisition of Institutional Shareholder Services (ISS), an ESG data and analytics provider.
With an 81% majority stake, the exchange operator has strengthened the focus on sustainable investing and acquired a complementary business to Deutsche Börse’s value chain, while assuring the ISS research offering will retain full editorial independence.
The ESG theme has swept the trading industry. Virtually all market infrastructure companies are getting on board the ESG train as investor demand for values-based investing goes through the roof.
The only way to make ESG investing credible is to make sure there is independent and quality extra-financial data, research, and analytics. Only that allows market participants to make well-informed investment decisions with a particular view on sustainability criteria.
Stephan Leithner, Member of the Executive Board of Deutsche Börse AG, said: “The quality, precision, and breadth of ISS’ data and research is unique in the market. Especially the company’s ESG expertise and data capabilities are highly complementary to Deutsche Börse’s businesses along the entire value chain. This acquisition, therefore, is a logical step in our ESG growth strategy, adding an important piece to the puzzle to become one of the world’s leading market infrastructure players on this critical development.”
Gary Retelny, President and CEO of ISS, commented: “We are pleased to be joining the Deutsche Börse group of companies and look forward to working with our new colleagues in furtherance of our long-standing mission to empower investors and companies to build for long-term and sustainable growth. ISS will continue to deliver the same independent and high-quality research, ratings, and other offerings our clients have come to expect, and we will continue to invest and innovate to ensure they receive next-generation solutions.”
Deutsche Börse’s current offering includes ESG indices via its index and analytics provider Qontigo and ESG derivatives via its derivatives exchange Eurex. The exchange operator has also recently taken a minority stake in ESG analytics provider Clarity AI.
To ensure editorial independence at ISS, the group has put in place a number of non-interference policies. ISS has also established a policy that it will not provide proxy research or other analytical research on Deutsche Börse.
ISS operates worldwide across more than 30 global offices in 15 countries and caters to more than 4,000 clients, including many of the world’s leading institutional investors.
SEC boosts oversight to address corporate greenwashing
The Securities and Exchange Commission is about to get more aggressive on climate-related disclosure in public company filings.
Acting Chair Allison Herren Lee, Director of the Division of Corporation Finance at the SEC, has announced her staff will review the extent to which public companies address the topics identified in the 2010 guidance regarding disclosure of climate change matters.
The SEC’s enhanced focus in this area will have the staff assessing compliance with disclosure obligations under the federal securities laws, engage with public companies on these issues, and absorb critical lessons on how the market is currently managing climate-related risks, the announcement said.
The SEC intends to update the 2010 guidance to take into account developments in the last decade.
SEC’s Acting Chair Allison Herren Lee, said: “Now more than ever, investors are considering climate-related issues when making their investment decisions. It is our responsibility to ensure that they have access to material information when planning for their financial future. Ensuring compliance with the rules on the books and updating existing guidance are immediate steps the agency can take on the path to developing a more comprehensive framework that produces consistent, comparable, and reliable climate-related disclosures”.
The trading industry has taken ESG policy and popularity to heart and has recently entered a momentum of new ESG-related trading services, analytics, listings, and Eco trading accounts.
Singapore Exchange has this week partnered with OneConnect to build an ESG disclosure platform that addresses common challenges faced by companies and investors such as lack of comparability, changing investors’ demand, as well as the evolving business landscape and regulations.
In the field of ESG analytics, SIX Group acquired Canada-based Orenda which analyzes and quantifies social media data to provide insights, quantify public perception, and identify values that resonate with customers and stakeholders. Refinitiv launched an AI-based engine that locates content pertaining to specific companies as well as cities, regions, and countries while excluding corporate press releases, corporate websites, and regulatory filings. In sum, it minimizes the impact of corporate “greenwashing.”
Retail FX brokerage CedarFX launched an Eco Account, where traders who opt to use this particular product will be charged a $1 commission fee per lot traded, which will be matched by CedarFX at the end of each month, for carbon reduction.
TradeEZ has partnered with online broker TradeZero to provide chart overlays that can be accessed on the TradeZero platform. In the future, the firm will be looking to partner with some of the largest firms around the world.
“The opportunities for linking crypto and fiat currencies are abundant. From crypto projects that require fiat solutions (like fiat on and off ramps and IBANs), through to crypto for traditional fiat systems, and solutions for fintech companies that enable clients to buy or sell crypto within their own infrastructure.”
The Malta Financial Services Authority (MFSA), the regulator responsible for the oversight of the forex sector in the Mediterranean island, today issued a warning against a forex broker that offers its services without having the authorization to do so.