.jpg)
The Industry Classification Benchmark (ICB), a jointly developed classification system launched by FTSE Group and Dow Jones Indexes, has been adopted by the Karachi Stock Exchange (KSE) to classify and analyse specific sectors of the Pakistan stock market using internationally accepted standards. The Industry Classification Benchmark provides a comprehensive system with four levels of granularity – industry (10), supersectors (19), sectors (41) and subsectors (114) and facilitates cross-border company comparison.
ICB will replace KSE’s own classification system after a transition period in which KSE will run both classification systems parallel to allow a smooth adoption process.
ICB is the standard used by major stock exchanges, data distributors, index providers, buy side and sell side institutions, custodians and media organizations globally. KSE joins other exchanges and global financial institutions which have integrated ICB into their research, trading and investment workflows. These include NASDAQ, NYSE/Euronext, the London Stock Exchange, the Swiss Exchange, Aegon, the International Monetary Fund and the World Economic Forum, as well as media outlets including The Wall Street Journal, the Financial Times, CNBC and Dow Jones Newswires.
James Cemprola, Managing Director of ICB commented, “By adopting well-established global standards like ICB, upcoming financial markets can strengthen their transparency, comparability and hence draw the attention of international market participants. The Industry Classification Benchmark is a relevant, clear, strictly rules-based and accurate system which is designed to meet the needs of sophisticated investors. We are pleased that financial institutions in emerging Asia such as the Karachi Stock Exchange are choosing ICB to assist them in bringing their services in line with practices of the global investment community.”
More information about ICB is available at www.icbenchmark.com.
