What Is An Index License Agreement

The MSCI Malaysia Index was designed to measure the performance of the major and mid-cap segments of the Malaysian equity market. With 42 components (at the 2014 level), the index covers about 85% of the Malaysian stock market universe. Depending on the intended use of the index, the licensee may wish for a licence agreement that automatically remains at the end of one or more conditions, unless it has been terminated by one of the parties. An in-depth discussion of the EU reference regulation does not fall within the scope of this article, but it should be noted that, since its entry into force, suppliers have proposed various provisions to deal with the new regulatory landscape. For example, it has become more common for index contracts to be subject to extensive reporting obligations, since a benchmark index (in part) is ranked according to the value of related transactions, in accordance with the EU Benchmark Regulation. In some cases, suppliers include provisions that expressly prohibit the use of an index so that it is subject to the authorisation requirement under the EU Reference Regulation. The provisions granting the corresponding licence should be carefully reviewed to ensure that they grant a licence for the use of the licensee`s index data and trademarks, as intended for the offer of the products concerned. The index provider should ideally compensate the licensees, without limiting the dollar, for damages incurred when the use of the index or trademarks by a third party is disputed by the taker. The license to use the index is generally structured as a single right to do certain things with data that are related to separate contractual restrictions. The structuring of the license thus allows the supplier to impose contractual restrictions (i.e.

agreements not to do certain things with the data) in order to protect its position, instead of relying on intellectual property rights (such as database rights or database copyrights) that are not safe with regard to index data. produce. A licensing agreement indicates which products can be issued in reference to the index. A licensing agreement can cover a single issue, a particular type of product (for example. B several emissions based on a given structure) or a whole range of products (for example. B notes, CDs, etc.). A licensing agreement can also define a geographical use restriction (usually determined on the basis of the offer wrapper). The same licensing agreement may also include OVER-the-counter derivatives that can be used for the issuer`s hedging. Parties should consider their future potential emission plans when defining the desired scope of a licensing agreement. The MSCI Frontier Markets 100 Index is strongly correlated with the broader MSCI Frontier Markets Index, its mother index, but consists of only 100 of its largest and most liquid components. The MSCI Frontier Markets 100 Index places greater emphasis on negotiability and liquidity relative to the parent index: its components must meet minimum liquidity levels1 and have sufficient foreign space2. Since the beginning of the structural products sector, issuers and sub-organizations have entered into licensing agreements with index sponsors.

These agreements allow the parties to the offer to use the index and its levels in relation to the supply of these products. One of the supplier`s main concerns is control of data transmission, as the transfer of data to third parties may mean that the provider can delegate licenses to third parties for a fee.