Product Development In The Age Of Indexing
By John Prestbo, Editor and Executive Director of Dow Jones Indexes
07 Oct 2008 at 12:09 PM GMT-04:00
Revolutionary changes have occurred throughout the futures and derivatives industry. One important aspect has been in product development generally and indexiing in particular.
By 1997, when Dow Jones Indexes became a business unit of Dow Jones & Co., other index providers already were established in derivatives. But Dow had the best-known index in the world, the Dow Jones Industrial Average. Dow signed three licenses that year, one for futures on the Chicago Board of Trade, one for options on Chicago Board Options Exchange and an exchange-traded fund on the American Stock Exchange. With this “can’t miss” strategy, Dow waited for success to roll in.
And waited…and waited.
You know the famous Thomas Edison quote about success being “1% inspiration and 99% perspiration?” Well, try waiting out a “can’t lose” formula to the sound of silence. There was a lot of “99%” around the shop.
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