Governance and policy

Equity Country Classification

FTSE understands that investors need an objective and consistent approach to the classification of markets as Developed, Advanced Emerging, Secondary Emerging or Frontier within global benchmarks. To ensure that the classification of markets within FTSE’s global benchmarks remains accurate and up-to-date, FTSE works closely with both the institutional investor community and domestic market authorities to review the classification status of individual markets regularly.

Using a range of criteria that was developed in conjunction with international investors, FTSE conducts an annual review of all markets contained in its global benchmarks and classifies them as Developed, Advanced Emerging, Secondary Emerging or Frontier. This process ensures that FTSE’s global benchmarks reflect the most relevant and accurate information about market structures, offering investors risk management insight into the regulatory and trading practices of the markets included in the global and regional indices they track.

In order to ensure that the potential reclassification of markets is transparent to investors, each year, FTSE creates a Watch List containing markets under consideration for a possible change in their classification. A full list of markets currently on the Watch List, and the results of the latest Country Classification Announcement can be viewed in the Country Classification Update. FTSE publishes the Annual Country Classification Announcement each September.