Venture will combine ownership of Dow, S&P indexes

AP News

11/4/2011 11:09:15 AM - AP News

The two best-known stock market indexes will be jointly owned under a venture between the companies that operate the Dow Jones industrial average and the Standard & Poor's 500.

McGraw-Hill Cos. and CME Group Inc. on Friday announced a venture called S&P/Dow Jones Indices. Other S&P and Dow indexes besides the two best-known ones are covered under the deal.

The venture is expected to generate revenue of more than $400 million from sources that include licensing agreements with financial products such as mutual funds.

New York-based McGraw-Hill will own 73 percent of the venture, with Chicago-based CME Group owning more than 24 percent through affiliates. News Corp.'s Dow Jones & Co. will own 2.6 percent.

S&P/Dow Jones Indices is expected to be operational in the first half of next year.