Nasdaq to Adopt FTSE Classification

November 12, 2003

The Nasdaq Stock Market announced that it will be reclassifying its stock benchmarks under the FTSE Global Classification System.

New York - 12 November 2003 - The Nasdaq stock market said it will reclassify its stock benchmarks according to international index provider FTSE's Global Classification System.

The world's largest electronic exchange and home to many U.S. tech stocks said it is making the move to allow investors around the globe to make apples-to-apples sector comparisons. For example, U.S. index provider Russell has also adopted FTSE's classification system to facilitate such comparisons worldwide.

The FTSE classification system breaks companies down into 10 economic groups, 36 industrial sectors and 102 subsectors.

Source: FTSE.com

An example is shown below:

Source: FTSE.com

'Nasdaq is a truly global stock market, with 346 international security listings representing 36 nations,' said John Jacobs, Nasdaq's Executive Vice President of Worldwide Marketing and Financial Products. 'Nasdaq companies are innovative and diverse, with leaders in all business sectors, including retail, financial and technology. By adopting the FTSE Classification System, we align our stocks to the same classification guide as investors here and abroad.'

According to FTSE, the FTSE Global Classification System is already used by the Athens, Cyprus, Egypt, Euronext, London and Madrid Stock Exchanges, and the JSE Securities Exchange in South Africa. Major investment firms and banks that use the system include Goldman Sachs, Hang Seng, HSBC, ING Barings, Merrill Lynch, In addition, Reuters and US-based investment consultants Frank Russell base their data and research on the FTSE classification system.

 

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