To coincide with the adoption of GICS, the exchanges will be launching a series of new industry indices. These initiatives are part of the radical changes taking place designed to create an even more attractive, modern and competitive market place in the Nordic region.
The new industry classification, GICS, facilitates industry analysis by classifying companies at four different levels: sectors, industry groups, industries and sub-industries. This classification is based upon each company's principal business activity i.e. the business area that generates the majority of the company's revenues. Poul Erik Skaanning-Jørgensen, President of Nordic Exchanges said, "We have been wanting to change the industry classification for some time, but had to wait until we found a model flexible enough to be long lasting. This change, together with other vital changes on the exchanges announced this year, will strengthen our market places further. GICS is well established among international and Nordic portfolio managers and investors, which is a prerequisite in the globalization of the capital markets that is taking place right now.
Henry Fernandez, President of MSCI said, "We are delighted that the three exchanges will be adopting GICS. This move will increase the transparency between their new local market indices and the widely used MSCI international benchmarks."
Separately, the Exchanges announced that they will also introduce their own independently-developed, new benchmark indices, which take into account free float, and thereby improve the indices' investability. The benchmark indices combine the features of a broad portfolio with sufficient liquidity in the underlying equities.
Oslo Bors and OM Stockholm Exchange will adopt GICS and new industry indices as of 5 January 2001 and the new benchmark indices in February 2001.The Copenhagen Stock Exchange will follow and thus adopt GICS and the indices not later than 1 April 2001.
