Oct 29 (Reuters) - Index provider MSCI ( MSCI ) on

Tuesday reported a rise in its third-quarter profit helped by

robust demand for its products and services.

WHY IT'S IMPORTANT

The Federal Reserve's recent decision to cut the benchmark

interest rate for the first time in four years has encouraged

investors to increase spending on risk-hedging and research

products.

The anticipation of further rate cuts, which has fueled a

market rally, has also boosted demand for data and products from

companies like MSCI ( MSCI ).

KEY QUOTE

"We posted our best-ever Q3 for recurring sales in Index and

Analytics, along with nearly 20% growth in asset-based-fee

revenue, which was driven by record AUM balances in financial

products linked to our indexes," CEO Henry Fernandez said.

BY THE NUMBERS

Total recurring subscriptions revenue for the third quarter

rose 15.4% to $536.6 million, while its index segment total

operating revenue gained nearly 12% to $404.9 million.

On an adjusted basis, MSCI ( MSCI ) earned $3.86 per share, an 11.9%

increase from $3.45 a share in the previous year.