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FTSE Group & Dow Jones Indexes Join to Form Industry
Classification Benchmark (ICB)
FTSE Group and Dow Jones Indexes are joining forces to create the
single most powerful industry classification system covering corporate
bonds and over 50,000 equities worldwide. It will be known as the Industry
Classification Benchmark (ICB).
The Industry Classification Benchmark (ICB) is an evolution of the FTSE
Global Classification System and the Dow Jones Global Classification
Standard.
The ICB is expected to become an instant global industry standard. Many of
the world's largest stock exchanges, including NASDAQ and the New York
Stock Exchange in the U.S.; the London Stock Exchange, Euronext and SWX
Swiss Exchange in Europe; and the JSE in South Africa, are current users
of the FTSE and Dow Jones Indexes systems, and therefore are likely to
convert to the ICB.
Other users of the current systems are index providers, Hang Seng, Russell
and STOXX Ltd., in addition to prominent financial media including the
Financial Times, The Wall Street Journal, CNBC, SmartMoney Magazine and
Dow Jones Newswires.
Most Relevant and Practical The ICB has been designed to be the most
relevant and user-friendly classification standard for trading and
investment decisions. Based on the historic performance and correlations
of companies, the ICB supplies a better measure of returns at sector
level.
- 10 Industries help investors monitor broad industry trends
- 18 new Supersectors can be used for trading
- 39 Sectors provide the best investment management tool
- 104 Subsectors allow more detailed analysis
Time Line
The new Industry Classification Benchmark (ICB) is scheduled to be
implemented by the end of 2004. Indicative data are expected to be made
available by June 2004, to ensure a low-cost and seamless transition for
users of the existing FTSE and Dow Jones Indexes classification systems.
More Information
For more information and to download a list of the 1,000 largest global
stocks from developed markets, classified by the new ICB system, please
visit www.ftse.com/icb or contact
FTSE Client Services at
mailto:info@ftse.com
Jerry Moskowitz, Managing Director, FTSE US
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