ZURICH (April 20, 2018) – STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, today announced the results of the annual Emerging and Developed Markets Country Classification review.
As of September 24, out of the 65 countries in the STOXX index universe, 25 are classified as developed markets, and 21 are classified as emerging markets. A full list of countries including their classification can be found under the dedicated country classification section of the STOXX website: https://www.stoxx.com/country-classification.
Poland will be classified as a developed market because it fulfills all criteria as defined in section 4.3 of the STOXX Index Methodology Guide.
The Czech Republic will no longer be classified as a developed market because it did not meet the market liquidity screening requirement for developed market. The total value of shares traded was within the 30th percentile and the 40th percentile.
Hungary will be classified as emerging market because it met the market liquidity screening requirement for emerging market. The total value of shares traded was within the 30th percentile and the 40th percentile.
Luxembourg will be classified as a developed market and captured in the Watch List following a STOXX governance decision and in line with section 4.3 of the STOXX Index Methodology Guide.
The STOXX market classification model relies on a completely rules-based and transparent methodology, and is the first such concept to exclude any subjective decisions from the process. The six criteria for the classification of a country as a developed marked include macroeconomic data, market cap, market liquidity, free currency convertibility on onshore and offshore markets, restrictions on capital flows, and governance based on political stability, control of corruption and regulatory quality. The data source for the diverse criteria are highly renowned and independent global organizations (i.e. World Bank, Thomson Reuters and PricewaterhouseCoopers).
Please visit www.stoxx.com for further information.