A Pan-Nordic exchange drew closer today with news that all eight NOREX exchanges will use the same industry classification standard – the Global Industry Classification Standard (GICS) developed by Morgan Stanley Capital International Inc. (MSCI) and Standard & Poor’s (S&P) – as a part of the integration of the Nordic and Baltic securities markets.
Stockholm Stock Exchange, Oslo Brs and Copenhagen Stock Exchange have used the GICS classification since 2001. The GICS classification will now also be adopted by Helsinki Stock Exchange, Iceland Stock Exchange, Tallinn Stock Exchange, Riga Stock Exchange and Vilnius Stock Exchange, commencing during the second quarter of 2005.
This means that the listed securities in Helsinki, Tallinn, Riga, Vilnius and Iceland will be classified in accordance with GICS. The future industry classification and the actual effective date are to be communicated well in advance of them entering into effect.
“The introduction of an established, Global Industry Classification Standard on all NOREX exchanges is another step in the harmonization of the Nordic and Baltic markets. By introducing GICS, we seek to further improve interest in, and knowledge about, securities listed on the NOREX exchanges. Furthermore, investors will benefit from increased transparency,” said Jukka Ruuska, Chairman of NOREX and President of OMX Exchanges.
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, meaning the business area that generates most of the company’s revenues.