FTSE International And Reuters Join Forces On Industry Classification

FTSE International and Reuters today announce plans to classify nearly 35,000 companies in the Reuters database of equities using the FTSE Global Classification System for the global equities markets. The service will be jointly produced and Reuters will disseminate the FTSE - Reuters Classification Service through its 3000 Xtra services worldwide. Buyside and sellside organisations are increasingly organising themselves to analyse markets on a broader worldwide sector analysis, rather than from a country specific viewpoint. The requirement for a thoroughly modern, and highly granular classification system covering all stocks worldwide is clear, and this scheme will meet that need. It will be dynamic, with Reuters and FTSE International cooperating to monitor changes in classifications to ensure that shifts in market focus are accurately represented. Already adopted by the Amsterdam, Brussels, London and Luxembourg exchanges for their domestic markets, the initiative is set to establish the FTSE Global Classification System as a global industry standard. This deal will see FTSE International and Reuters working together over the next 12 months to classify approximately 35,000 companies in over 50 countries, of which FTSE International has already classified some 4,500 companies. FTSE International, under the oversight and management of the FTSE Global Classification Committee, will audit the remaining classifications supplied by Reuters. The FTSE Global Classification Committee consists of independent industry professionals from around the world who manage and oversee the operation of the classification system. The FTSE - Reuters Classification Service giving details of all companies, including ongoing changes, will be made available electronically as a service from FTSE International to all investors and vendors. Mark Makepeace, Managing Director, FTSE International commented, "This joint initiative between FTSE and Reuters is another step in establishing the FTSE Global Classification System as the global industry standard. It is clear that in the future only one or two systems will be used to classify companies worldwide. The FTSE Global Classification System will be one of them." Lloyd Beat, Global Head of Equities at Reuters, stated : "This innovative classification scheme will provide clients with an opportunity to allocate and manage assets on a global basis. Reflecting the rapidly changing and increasingly global equities markets, it will provide additional value in particular to our fund management clients. This scheme allows both Reuters and FTSE International to build on our existing strengths".