SIX launches ESG indices to address investor demand

Rick Steves

The trading industry must always keep pace with geopolitical and technological disruption along with client demand. The ESG products must not be overlooked.

SIX Group has launched its first ESG indices to address overwhelming demand from investors. The criteria were drawn from the independent Swiss sustainability rating agency Inrate.

The two SPI ESG indices for equities launched by SIX Group are based on the Swiss Performance Index (SPI). THe company also released 20 new SBI ESG indices for bonds, all based on the Swiss Bond Index (SBI).

Marion Leslie, Head Financial Information and member of SIX Executive Board, commented: “SIX is introducing ESG indices with broad coverage of Swiss equities and bonds for the first time. In doing so, we are creating new opportunities for investors to target their investments with sustainable criteria. This is in line with our strategy to consistently evolve our data offering to provide solutions for future market needs.”

SIX’s ESG indices require companies to have an ESG Impact Rating of at least a C+ and generate no more than five percent of its revenue in a critical sector (adult entertainment, alcohol, armaments, gambling, genetic engineering, nuclear energy, coal, oil sands, and tobacco).

Christoph Müller, Chief Executive Officer at Inrate, said: “Investors integrate ESG into their investments in order to incorporate general concerns and values of society and to expand the data basis for investment decisions. This requires a high degree of comparability, systematics and, if possible, quantification. Inrate wants to take the leading role in this.”

ESG investing has been on the rise in recent years. Trading companies have been addressing the demand for “responsible investing” with indices and innovative trading operations. Deutsche Bank has recently announced the plan to launch trades with an environmental, social, and governance (ESG) component.

“We will do them. When there’s client demand for a solution then banks will step up to the plate, so I’m already firing emails about it”, said Christopher Wall, global head of foreign exchange structuring at Deutsche Bank.

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.

Read this next

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)


Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.

Institutional FX

Finalto launches Prime of Prime offering on LSEG’s FX Matching venue

“By combining our expertise in Prime of Prime services with LSEG’s robust trading platform, we aim to empower clients with the tools and resources needed to navigate the FX market with confidence.”

Digital Assets

Tether’s USDT stablecoin nears 100 billion in circulating supply

USDT, the world’s largest stablecoin, has reached close to 100 billion in circulating supply, currently sitting at around 99.5 billion. Its market capitalization, which reached over $100 billion at one point, is calculated by multiplying the supply by the price.

Market News

5 Hot Stocks For March 2024

Entering March 2024 marks the beginning of the final stretch of the first quarter of the year, seemingly passing swiftly amidst market anticipation and global economic factors.