South Korean government bonds will be added to the FTSE World Government Bond Index (WGBI) from November 2025 India will be added to the FTSE Emerging Markets Government Bond Index (EMGBI) inclusive from September 2025 Price source will be changed to Tradeweb FTSE Closing prices for US, European and UK government bonds in the FTSE Global Bond Index Egypt removed from FTSE Stock Country Classification Watchlist, with possible demotion from secondary emerging market status to unclassified market status Greece Watchlist for potential reclassification from developed and emerging markets to developed markets added to country classification
Global index provider FTSE Russell has announced the results of its annual country classification review of countries monitored by global equity and bond indexes.
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FTSE Russell has reclassified South Korea from Market Accessibility 1 to 2 and added South Korean government bonds to the FTSE World Government Bond Index (WGBI), effective from the index profile in November 2025 and phased in over a year. We are pleased to announce that – Yearly period on a quarterly basis. Since being placed on the watch list in September 2022, several initiatives have been implemented by market authorities aimed at improving access to Korean government bonds by foreign investors. Most recently, these efforts have facilitated the connection of the Korean bond market to the International Central Securities Depository in June 2024, and allowed foreign exchange of the Korean won by third parties from July 2024. It was done. Following this confirmatory announcement regarding index inclusion, FTSE Russell is encouraging collaboration with global financial institutions. Financial market infrastructure providers will continue preparatory activities to support WGBI users’ future investments in the Korean government bond market and take advantage of the benefits of market structural reforms. FTSE Russell continues to welcome feedback from index stakeholders regarding these processes to ensure smooth participation of the Korean government bond market in the WGBI.
Nikki Stefanelli, head of fixed income, currency and commodity index policy at FTSE Russell, commented: FTSE Russell has closely monitored the capital market reforms implemented by the Korean Market Authority over the past two years and their effectiveness in achieving stringent accessibility standards for participation in the WGBI. We look forward to continuing to support the market as it prepares for index adoption at the end of next year. ”
Choi Sang-mok, Deputy Prime Minister and Minister of Finance of South Korea, commented: “Over the past two years, the Korean government has announced a series of initiatives to strengthen the capital market for domestic and foreign investors, which have been successfully implemented. We have actively engaged with FTSE Russell and international market participants regarding their ability to facilitate the inclusion of Korean government bonds into the FTSE WGBI, which requires market access. MOEF is pleased with the outcome of today’s decision by FTSE Russell and is committed to continuing and strengthening our engagement with market participants to ensure smooth index inclusion from November 2025. This will lead to a welcome increase in international investment in our capital markets.”
FTSE Russell has announced that India’s market access level will be reclassified from 0 to 1 and Indian government bonds will be included in the FTSE Emerging Markets Government Bond Index (EMGBI) from September 2025. This decision reflects continued progress in India’s level of market accessibility. The accessibility of these securities markets to international investors and the increasing importance of the Indian government bond market in the world’s mainstream emerging market debt portfolios. FTSE Russell would like to thank the Reserve Bank of India for its continued dialogue and commitment to promoting international investment in the domestic market.
Change price source to Tradeweb FTSE closing prices for US, Eurozone and UK government markets
FTSE Russell announces that from March 2025, the price source for US, European and UK government bonds will be changed to FTSE closing prices on Tradeweb. This change applies to all FTSE Global Bond Indexes, including the FTSE World Government Bond Index. (WGBI). Tradeweb FTSE bond closing prices are based on bid-side and offer-side price quotes provided by market makers to Tradeweb’s electronic trading platform for institutional dealers and customers during daily pre-determined collection windows. Closing prices derived from these quotes provide index users with a more representative, transparent and robust approach to bond valuation. In its role as benchmark custodian for these closing prices, FTSE Russell is uniquely placed to ensure that closing prices are calculated in line with its rigorous governance standards.
The full text of the FTSE Bond Country Classification announcement can be found here: FTSE Bond Country Classification
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Egypt will be removed from the watch list as it may be demoted from secondary emerging market to unclassified market status and will remain as a secondary emerging market within the framework of capital country classification. In March 2024, market participants reported that previous delays in the ability of international institutional investors to repatriate capital from Egypt have been resolved, and foreign exchange queues have remained cleared since then. .
On July 3, 2024, FTSE Russell announced the reclassification of Pakistan from secondary emerging market to frontier market status with effect from publication on Monday, September 23, 2024.
Vietnam remains on the watch list for possible reclassification from Frontier to Secondary Emerging Market as it has not yet met the payment requirements set out in the Country Classification Framework. Vietnamese authorities remain committed to pursuing various regulatory reforms necessary to achieve emerging market status.
Greece has been added to the watch list for possible reclassification from developed to developed market as it meets the 22 FTSE market quality criteria required to achieve developed market status. I am.
The full text of the FTSE Stock Country Classification announcement can be found here: FTSE Stock Country Classification
David Sol, Head of Global Policy at FTSE Russell, commented: We strongly believe that continued engagement with the investment community, stock exchanges, regulators and other stakeholders allows us to design and evolve indices that reflect best practices and are easily trackable and replicable. I am. The completion of the 2024 Country Classification Review is an important milestone in ensuring that FTSE Russell’s equity and fixed income indexes remain fit for purpose. ”
For more information about the Equity Country Classification Framework and the Fixed Income Country Classification Framework, please visit our website. The next update will be released in March 2025.
Source: FTSE Russell
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