European Benchmarks Case Studies

By choosing Cboe Europe’s real-time benchmarks at a significantly reduced cost compared to the incumbent index provider, Charles Stanley could keep costs low and remain a highly competitive direct-to-client market. The transparency around index methodology and performance plus high correlation to incumbent benchmarks made for an easy transition.

“Inevitably there is some reluctance to replace an index provider when it is widely accepted and understood. However, Cboe Europe is very transparent concerning index methodology and performance, and at a customer level it is easy to understand.

There is widespread acceptance from the Charles Stanley Direct customer base that to keep charges low we must keep a keen eye on all costs involved in running our investment platform. Our customers were therefore understanding of the change of provider.

Importantly, we were able to provide [Cboe and legacy indexes] concurrently for a period to aid the switchover process, which helped make for a smooth transition and allowed us time to explain the change.”

Rob Morgan, Investment Analyst
Charles Stanley Direct

Rabobank used an incumbent UK index to inform retails clients of developments in the UK market. Rabobank decided to seek an alternative when the incumbent provider changed the licence and severely increased without notice.

Rabobank’s clients have accepted the replacement with no issues or complaints.

“[The Cboe UK 100] was a fit for purpose solution for us. We did not wait for the end result of the negotiations with [the existing index provider] and cancelled the license in favour of the Cboe UK 100 license.”

Jan Willem Schokking, Vendor Manager Securities Services
Rabobank Operations Investment Services