Qontigo market cap indices - sales and issuance 2021-2022

In the institutional side of the market, products are not always listed, and they are large products in terms on notional usually based on custom or derived indices, according to Loeb.

Sector indices

In the industry sector category, Qontigo is also a leading supplier of underlyings for structured products. SRP data shows that the Eurostoxx Banks was the best-selling industry sector index between 2021 and 2022, followed by the Stoxx Europe 600 Oil & Gas Index, Eurostoxx Utilities, Eurostoxx Oil & Gas and Eurostoxx Insurance.

Other industry sector indices recorded in the structured products market over the last two years include the Eurostoxx Automobiles & Parts, Eurostoxx Construction & Materials, and Stoxx Europe 600 Insurance, among others - there were 31 Qontigo sector indices across more than 2,300 products worth an estimated US$13 billion.

According to Loeb, sector indices also remain an important part of the index provider’s offering and they still drive significant activity and volumes.

“Sector indices have always played a specific role for investors seeking targeted and more tactical exposures as the different sectors can offer value at different times,” she said.

“Among the traditional 11 industries, apart from the usual rotations generated by geopolitical or economic events, we do not notice any new trend.”

Loeb notes that traditional sectors are easier to define when building an index, but when it comes to new businesses not yet generating revenues it requires new data sets, such as patterns and the use of artificial intelligence.

“As an index provider, we are working with our clients to identify new interesting themes, on-board relevant data providers and define robust index methodologies,” she said. It’s not always easy for instance how to define a valuable brand or companies whose activities do not have a negative impact on the oceans.

“Some of these themes will remain as such but some might become the sectors of tomorrow,”

The index provider is also a leading supplier of market cap and sector indices optimised to be used in structured products under the iSTOXX brand which was launched in response to client demand.

“We have more than 25 variations within our industry sector family with different levels of decrement including banks, chemicals, consumer products, industrial goods, automobile, health care, oil & gas or telecommunications,” said Loeb.