Developed market

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Further information: Developed country
Developed markets, according to the four data providers FTSE, MSCI, S&P and Dow Jones.
  recognised as Developed markets by all of these
  recognised as Developed markets by a majority of these
  recognised as Developed markets by a minority of these

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.

Dow Jones list[edit]

As of September 2014, Dow Jones classifies the following 26 countries as developed markets:[1]

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.[2] As of March 2012, FTSE Group has classified 26 countries as developed markets[3] (the list being identical to the S&P list, see below):

FTSE Criteria[edit]

Developed countries all have met criteria under the following categories[4]

  1. They are high income economies (as measured by the World Bank GNI Per capita Rating, 2008)
  2. Market and Regulatory Environment EMG EMG
    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
  3. 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
  4. 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
  5. Derivatives
    1. Developed derivatives markets
  6. Size of Market
    1. Market Capitalisation
    2. Total Number of Listed Companies (as at 31st Dec 2008)

MSCI list[edit]

As of September 2014, MSCI classified the following 26 countries as developed markets:[5]

Russell list[edit]

As of May 2013, Russell Investments considers the following countries developed markets:[6]

S&P list[edit]

As of September 2014, Standard and Poor's classifies the following 26 countries as developed markets, the list being identical to the Dow Jones' list:[7]

Table[edit]

Country Dow Jones[8] FTSE[9] MSCI[10] Russell[11] S&P[12]
 Australia Green tickY Green tickY Green tickY Green tickY Green tickY
 Austria Green tickY Green tickY Green tickY Green tickY Green tickY
 Belgium Green tickY Green tickY Green tickY Green tickY Green tickY
 Canada Green tickY Green tickY Green tickY Green tickY Green tickY
 Denmark Green tickY Green tickY Green tickY Green tickY Green tickY
 Finland Green tickY Green tickY Green tickY Green tickY Green tickY
 France Green tickY Green tickY Green tickY Green tickY Green tickY
 Germany Green tickY Green tickY Green tickY Green tickY Green tickY
 Hong Kong Green tickY Green tickY Green tickY Green tickY Green tickY
 Iceland Green tickY Green tickY
 Ireland Green tickY Green tickY Green tickY Green tickY Green tickY
 Israel Green tickY Green tickY Green tickY Green tickY
 Italy Green tickY Green tickY Green tickY Green tickY Green tickY
 Japan Green tickY Green tickY Green tickY Green tickY Green tickY
 Luxembourg Green tickY Green tickY Green tickY Green tickY
 Netherlands Green tickY Green tickY Green tickY Green tickY Green tickY
 New Zealand Green tickY Green tickY Green tickY Green tickY Green tickY
 Norway Green tickY Green tickY Green tickY Green tickY Green tickY
 Portugal Green tickY Green tickY Green tickY Green tickY Green tickY
 Singapore Green tickY Green tickY Green tickY Green tickY Green tickY
 South Korea Green tickY Green tickY Green tickY
 Spain Green tickY Green tickY Green tickY Green tickY Green tickY
 Sweden Green tickY Green tickY Green tickY Green tickY Green tickY
  Switzerland Green tickY Green tickY Green tickY Green tickY Green tickY
 United Kingdom Green tickY Green tickY Green tickY Green tickY Green tickY
 United States Green tickY Green tickY Green tickY Green tickY Green tickY


See also[edit]

References[edit]