GLOBAL - The McGraw-Hill Companies and CME Group have launched S&P Dow Jones Indices, the world's largest provider of financial market indices.
The companies said the new joint venture would combine S&P Indices' position in equity, commodity, real estate and strategy indices with Dow Jones Indexes' expertise in equity, commodity, emerging market, target date and dividend indices.
Under the terms of the deal, McGraw-Hill will contribute its S&P Indices business, while the CME Group/Dow Jones joint venture will contribute the Dow Jones Indexes business to create S&P Dow Jones Indices.
McGraw-Hill owns 73% of S&P Dow Jones Indices, CME owns 24.4% through its affiliates, and Dow Jones & Company indirectly owns 2.6%.
The new company will be part of the new McGraw-Hill Financial Company, following the separation of McGraw-Hill Companies into two public companies.
Terry Duffy, CME executive chairman and president, said: "Building on our long-term partnership with McGraw-Hill, this new JV will create new risk management index products and trading opportunities for both our institutional and retail customers around the world."
Alexander Matturri, executive managing director at S&P Indices, has been named chief executive at S&P Dow Jones Indices, while Lou Eccleston, president at S&P Capital IQ, will chair the company's seven-member board.
The board will comprise five directors designated by McGraw-Hill and two by CME.
They will include Robert Shakotko, managing director, S&P Dow Jones Indices; Charles Teschner, executive vice-president, global strategy and corporate development, McGraw-Hill; Elizabeth O'Melia, senior vice-president, treasury operations, McGraw-Hill; John Pietrowicz, senior managing director, business development and corporate finance, CME; and Scot Warren, senior managing director, equity index products and index services, CME.