Market Overview

MSCI Dips Following BlackRock Comments

Shares of index provider MSCI (NYSE: MSCI) are trading lower by nearly one percent, hovering near the lows of the day. This followed comments made by BlackRock's(NYSE: BLK) Mark Wiedman at an ETF industry conference.

Speaking at the Index Universe Inside ETFs conference in Florida, Wiedman, managing director and global head of iShares, said the world's largest ETF sponsor is reviewing the terms on which it does business with its index providers, Barron's reported.

Wiedman said there is "nothing imminent," but MSCI fell perhaps on speculation one of its most noteworthy clients could be considering alternative indexes or could be looking to press MSCI for lower fees.

Shares of MSCI plunged last October when Vanguard, the third-largest U.S. ETF sponsor, announced it would drop MSCI indexes on 22 of its ETFs.

iShares accounted for eight percent of MSCI's 2011 revenue. The impact of the lost Vanguard business is expected to be reflected in MSCI's results for the current quarter.

Last week, MSCI reported a fourth-quarter adjusted profit of 52 cents per share on operating revenue of $247.1 million.

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