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, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

<