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Full-Text Articles in Securities Law
Benchmarking The World: A Proposal For Regulatory Oversight Of Stock Market Index Providers, Jenna L. Mccarthy
Benchmarking The World: A Proposal For Regulatory Oversight Of Stock Market Index Providers, Jenna L. Mccarthy
Vanderbilt Journal of Transnational Law
Wall Street has recently seen a shift from active management, which involves investors or portfolio managers buying and selling stocks, towards passive management, where investors invest in funds that seek to match the returns of an underlying index. As the popularity of index funds has grown, questions have arisen regarding the role of the index providers that produce the underlying indices. Unlike the funds themselves, these providers are largely unregulated, and have considerable discretion to determine the makeup of indices. This wide discretion allows index providers to exercise control over the global investment community since they have the ability to …