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Developed market

February 16, 2024

For broader coverage of this topic, see Developed country.

In investing, a developed market is a country that is most developed in terms of its economy and capital markets. The country must be high income, but this also includes openness to foreign ownership, ease of capital movement, and efficiency of market institutions. This term is contrasted with developing market (emerging markets and frontier markets are types of developing markets).

FTSE Group list edit

FTSE Group, a provider of economic and financial data, assigns the market status of countries as Developed, Advanced Emerging, Secondary Emerging or Frontier on the basis of their economic size, wealth, quality of markets, depth of markets, breadth of markets. From 26 September 2019, FTSE Group classifies 26 countries as developed markets:[1]

FTSE criteria edit

Developed countries all have met criteria under the following categories:[2][3]

  1. They are high income economies (as measured by the World Bank GNI per capita Rating, Market and Regulatory Environment)
    1. Formal stock market regulatory authorities actively monitor market (e.g., SEC, FSA, SFC)
    2. Fair and non-prejudicial treatment of minority shareholders
    3. Non or selective incidence of foreign ownership restrictions
    4. No objections or significant restrictions or penalties applied on the repatriation of capital
    5. Free and well-developed equity market
    6. Free and well-developed foreign exchange market
    7. Non or simple registration process for foreign investors
  2. Custody and Settlement
    1. Settlement – Rare incidence of failed trades
    2. Custody-Sufficient competition to ensure high quality custodian services
    3. Clearing & settlement – T +3 or shorter, T+7 or shorter for Frontier
    4. Stock Lending is permitted
    5. Settlement – Free delivery available
    6. Custody – Omnibus account facilities available to international investors
  3. Dealing Landscape
    1. Brokerage – Sufficient competition to ensure high quality broker services
    2. Liquidity – Sufficient broad market liquidity to support sizeable global investment
    3. Transaction costs – implicit and explicit costs to be reasonable and competitive
    4. Short sales permitted
    5. Off-exchange transactions permitted
    6. Efficient trading mechanism
    7. Transparency – market depth information / visibility and timely trade reporting process
  4. Derivatives
    1. Developed derivatives markets
  5. Size of Market
    1. Market Capitalisation
    2. Total Number of Listed Companies (as of 31 December 2008)

MSCI list edit

As of June 2019, MSCI classified the following 25 countries as developed markets:[4][5]

According to MSCI Global investable Market Indexes Methodology – November 2019,[4] Cyprus and Luxembourg "are part of the developed market universe", but "given their modest size, these markets are not included in the MSCI World index".

S&P list edit

As of 24 June 2019, Standard and Poor's classifies the following 25 countries as developed markets:[6]

STOXX list edit

As of 23 September 2019, STOXX classifies the following 25 countries as developed markets:[7]

Table edit

Country FTSE[1][8] MSCI[4] S&P[6] STOXX[7]
  Australia  Y  Y  Y  Y
  Austria  Y  Y  Y  Y
  Belgium  Y  Y  Y  Y
  Canada  Y  Y  Y  Y
  Cyprus  N  Y  N  N
  Denmark  Y  Y  Y  Y
  Finland  Y  Y  Y  Y
  France  Y  Y  Y  Y
  Germany  Y  Y  Y  Y
  Hong Kong  Y  Y  Y  Y
  Ireland  Y  Y  Y  Y
  Israel  Y  Y  Y  Y
  Italy  Y  Y  Y  Y
  Japan  Y  Y  Y  Y
  Luxembourg  Y  Y  Y  Y
  Netherlands  Y  Y  Y  Y
  New Zealand  Y  Y  Y  Y
  Norway  Y  Y  Y  Y
  Poland  Y  N  N  Y
  Portugal  Y  Y  Y  Y
  Singapore  Y  Y  Y  Y
  South Korea  Y  N  Y  N
  Spain  Y  Y  Y  Y
  Sweden  Y  Y  Y  Y
   Switzerland  Y  Y  Y  Y
  United Kingdom  Y  Y  Y  Y
  United States  Y  Y  Y  Y

See also edit

References edit

  1. ^ a b "FTSE Equity Country Classification September 2019 Annual Announcement" (PDF). FtseRussell.com. Retrieved 14 December 2019.
  2. ^ "Research FTSE Country Classification Process" (PDF). Ftse.com. March 2018. Retrieved 2 March 2019.
  3. ^ "FTSE QUALITY OF MARKETS CRITERIA (ASIA PACIFIC)" (PDF). Ftse.com. September 2018. Retrieved 2 March 2019.
  4. ^ a b c "MSCI GLOBAL INVESTABLE MARKET INDEXES METHODOLOGY" (PDF). Msci.org. Retrieved 14 November 2019.
  5. ^ "Market classification – MSCI". Msci.com. Retrieved 2 March 2019.
  6. ^ a b "S&P Global Equity Indices Monthly Update" (PDF). Us.spindices.com. August 13, 2019. p. 2. Retrieved 14 December 2019.
  7. ^ a b "STOXX Regional Classification effective Sep. 23, 2019" (PDF). stoxx.com. p. 1. Retrieved 14 December 2019.
  8. ^ "FTSE Russell announces results of FTSE annual country classification review". FTSE Russell. 2017-09-29. Retrieved 2017-10-18.

February 16, 2024
developed, market, broader, coverage, this, topic, developed, country, investing, developed, market, country, that, most, developed, terms, economy, capital, markets, country, must, high, income, this, also, includes, openness, foreign, ownership, ease, capita. For broader coverage of this topic see Developed country In investing a developed market is a country that is most developed in terms of its economy and capital markets The country must be high income but this also includes openness to foreign ownership ease of capital movement and efficiency of market institutions This term is contrasted with developing market emerging markets and frontier markets are types of developing markets Contents 1 FTSE Group list 1 1 FTSE criteria 2 MSCI list 3 S amp P list 4 STOXX list 5 Table 6 See also 7 ReferencesFTSE Group list editFTSE Group a provider of economic and financial data assigns the market status of countries as Developed Advanced Emerging Secondary Emerging or Frontier on the basis of their economic size wealth quality of markets depth of markets breadth of markets From 26 September 2019 FTSE Group classifies 26 countries as developed markets 1 nbsp Australia nbsp Austria nbsp Belgium nbsp Canada nbsp Denmark nbsp Finland nbsp France nbsp Germany nbsp Hong Kong nbsp Ireland nbsp Israel nbsp Italy nbsp Japan nbsp Luxembourg nbsp Netherlands nbsp New Zealand nbsp Norway nbsp Poland nbsp Portugal nbsp Singapore nbsp South Korea nbsp Spain nbsp Sweden nbsp Switzerland nbsp United Kingdom nbsp United StatesFTSE criteria edit Developed countries all have met criteria under the following categories 2 3 They are high income economies as measured by the World Bank GNI per capita Rating Market and Regulatory Environment Formal stock market regulatory authorities actively monitor market e g SEC FSA SFC Fair and non prejudicial treatment of minority shareholders Non or selective incidence of foreign ownership restrictions No objections or significant restrictions or penalties applied on the repatriation of capital Free and well developed equity market Free and well developed foreign exchange market Non or simple registration process for foreign investors Custody and Settlement Settlement Rare incidence of failed trades Custody Sufficient competition to ensure high quality custodian services Clearing amp settlement T 3 or shorter T 7 or shorter for Frontier Stock Lending is permitted Settlement Free delivery available Custody Omnibus account facilities available to international investors Dealing Landscape Brokerage Sufficient competition to ensure high quality broker services Liquidity Sufficient broad market liquidity to support sizeable global investment Transaction costs implicit and explicit costs to be reasonable and competitive Short sales permitted Off exchange transactions permitted Efficient trading mechanism Transparency market depth information visibility and timely trade reporting process Derivatives Developed derivatives markets Size of Market Market Capitalisation Total Number of Listed Companies as of 31 December 2008 MSCI list editAs of June 2019 MSCI classified the following 25 countries as developed markets 4 5 nbsp Australia nbsp Austria nbsp Belgium nbsp Canada nbsp Cyprus nbsp Denmark nbsp Finland nbsp France nbsp Germany nbsp Hong Kong nbsp Ireland nbsp Israel nbsp Italy nbsp Japan nbsp Luxembourg nbsp Netherlands nbsp New Zealand nbsp Norway nbsp Portugal nbsp Singapore nbsp Spain nbsp Sweden nbsp Switzerland nbsp United Kingdom nbsp United StatesAccording to MSCI Global investable Market Indexes Methodology November 2019 4 Cyprus and Luxembourg are part of the developed market universe but given their modest size these markets are not included in the MSCI World index S amp P list editAs of 24 June 2019 Standard and Poor s classifies the following 25 countries as developed markets 6 nbsp Australia nbsp Austria nbsp Belgium nbsp Canada nbsp Denmark nbsp Finland nbsp France nbsp Germany nbsp Hong Kong nbsp Ireland nbsp Israel nbsp Italy nbsp Japan nbsp Luxembourg nbsp Netherlands nbsp New Zealand nbsp Norway nbsp Portugal nbsp Singapore nbsp South Korea nbsp Spain nbsp Sweden nbsp Switzerland nbsp United Kingdom nbsp United StatesSTOXX list editAs of 23 September 2019 STOXX classifies the following 25 countries as developed markets 7 nbsp Australia nbsp Austria nbsp Belgium nbsp Canada nbsp Denmark nbsp Finland nbsp France nbsp Germany nbsp Hong Kong nbsp Ireland nbsp Israel nbsp Italy nbsp Japan nbsp Luxembourg nbsp Netherlands nbsp New Zealand nbsp Norway nbsp Poland nbsp Portugal nbsp Singapore nbsp Spain nbsp Sweden nbsp Switzerland nbsp United Kingdom nbsp United StatesTable editCountry FTSE 1 8 MSCI 4 S amp P 6 STOXX 7 nbsp Australia nbsp Y nbsp Y nbsp Y nbsp Y nbsp Austria nbsp Y nbsp Y nbsp Y nbsp Y nbsp Belgium nbsp Y nbsp Y nbsp Y nbsp Y nbsp Canada nbsp Y nbsp Y nbsp Y nbsp Y nbsp Cyprus nbsp N nbsp Y nbsp N nbsp N nbsp Denmark nbsp Y nbsp Y nbsp Y nbsp Y nbsp Finland nbsp Y nbsp Y nbsp Y nbsp Y nbsp France nbsp Y nbsp Y nbsp Y nbsp Y nbsp Germany nbsp Y nbsp Y nbsp Y nbsp Y nbsp Hong Kong nbsp Y nbsp Y nbsp Y nbsp Y nbsp Ireland nbsp Y nbsp Y nbsp Y nbsp Y nbsp Israel nbsp Y nbsp Y nbsp Y nbsp Y nbsp Italy nbsp Y nbsp Y nbsp Y nbsp Y nbsp Japan nbsp Y nbsp Y nbsp Y nbsp Y nbsp Luxembourg nbsp Y nbsp Y nbsp Y nbsp Y nbsp Netherlands nbsp Y nbsp Y nbsp Y nbsp Y nbsp New Zealand nbsp Y nbsp Y nbsp Y nbsp Y nbsp Norway nbsp Y nbsp Y nbsp Y nbsp Y nbsp Poland nbsp Y nbsp N nbsp N nbsp Y nbsp Portugal nbsp Y nbsp Y nbsp Y nbsp Y nbsp Singapore nbsp Y nbsp Y nbsp Y nbsp Y nbsp South Korea nbsp Y nbsp N nbsp Y nbsp N nbsp Spain nbsp Y nbsp Y nbsp Y nbsp Y nbsp Sweden nbsp Y nbsp Y nbsp Y nbsp Y nbsp Switzerland nbsp Y nbsp Y nbsp Y nbsp Y nbsp United Kingdom nbsp Y nbsp Y nbsp Y nbsp Y nbsp United States nbsp Y nbsp Y nbsp Y nbsp YSee also editDeveloped country Emerging market First World Frontier markets Global North and Global SouthReferences edit a b FTSE Equity Country Classification September 2019 Annual Announcement PDF FtseRussell com Retrieved 14 December 2019 Research FTSE Country Classification Process PDF Ftse com March 2018 Retrieved 2 March 2019 FTSE QUALITY OF MARKETS CRITERIA ASIA PACIFIC PDF Ftse com September 2018 Retrieved 2 March 2019 a b c MSCI GLOBAL INVESTABLE MARKET INDEXES METHODOLOGY PDF Msci org Retrieved 14 November 2019 Market classification MSCI Msci com Retrieved 2 March 2019 a b S amp P Global Equity Indices Monthly Update PDF Us spindices com August 13 2019 p 2 Retrieved 14 December 2019 a b STOXX Regional Classification effective Sep 23 2019 PDF stoxx com p 1 Retrieved 14 December 2019 FTSE Russell announces results of FTSE annual country classification review FTSE Russell 2017 09 29 Retrieved 2017 10 18 Retrieved from https en wikipedia org w index php title Developed market amp oldid 1204767763, wikipedia, wiki, book, books, library,

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