Markit Group Limited, which provides independent mark-to-market pricing, asset valuations, dividend forecasting and index services, announced it is to adopt the Industry Classification Benchmark (ICB), a joint product of Dow Jones Indexes and FTSE Group (FTSE). ICB will be implemented for use within Markit’s entire range of entities, across all asset classes.
The ICB sector classifications are a four-tier hierarchical industry classification structure centred on a rules-based methodology for placing entities within sectors. Markit will work closely with ICB to provide classifications for the entire universe of around 5,000 credit default swap reference entities and bond issuing entities, which will enhance ICB’s existing coverage of approximately 40,000 equities. Markit will also incorporate the ICB sectors within its equity index feeds, which will be offered on a pass-through basis to end users.
Tom McNerney, Managing Director and Head of Analytics at Markit said, “ICB’s classification process provides a comprehensive structure which will enhance our customers’ ability to build diverse and more accurate credit indices and portfolios. Our input will ensure that entities within the credit markets are correctly classified from an economic perspective.”