Qontigo And Eurex Respond To New Industry Classification
Andreas von Brevern
Phone: +49 (0) 69 211 14284
Deutsche Börse's index provider Qontigo and its derivatives exchange Eurex are adapting their offering to the upcoming new classification of industrial sectors. To reflect the new Industry Classification Benchmark (ICB) framework, they have announced an expansion of their sector indices and derivatives offering coming into force on September 21.
As a result of the new classification, Qontigo has identified four Supersectors, for which new EURO STOXX and STOXX Europe 600 indices will be launched: Consumer Products & Services, Energy, Food, Beverage & Tobacco, and Personal Care, Drug & Grocery Stores.
Eurex is supplementing its offering with the corresponding futures and options. To facilitate the transition to the new classification, Qontigo will retain the old indices linked to former Supersectors Oil & Gas, Personal & Household Goods and Food & Beverage as legacy indices. The corresponding derivatives on these legacy indices remain listed.
The ICB is a globally recognized standard for categorizing companies and securities. Each stock in the investable universe is uniquely classified based on the company's primary revenue source. This categorization provides an accurate classification of companies in their respective business environments. There are four levels of classification: Industries, Supersectors, Sectors and Subsectors. The number of categories will be enhanced, and some categories will be renamed. Changes in the STOXX index landscape include:
- ICB Supersector Oil and Gas will evolve into Supersector Energy. Qontigo will retain the STOXX Europe 600 and EURO STOXX Oil & Gas Supersector indices as legacy indices and launch new Energy Supersector indices.
- ICB Supersector Food & Beverages will evolve into Supersector Food, Beverages & Tobacco. Qontigo will retain the STOXX Europe 600 and EURO STOXX Food & Beverages Supersector indices as legacy indices and launch new Food, Beverages & Tobacco Supersector indices.
- ICB Supersector Personal & Household Goods will evolve into Supersector Consumer Products & Services. Qontigo will retain the STOXX Europe 600 and EURO STOXX Personal & Household Goods Supersector indices as a legacy index and launch new Consumer Products & Services Supersector indices.
- ICB is introducing the new Supersector Personal Care, Drug and Grocery Stores; Qontigo will launch the corresponding Supersector indices.
- Other indices that rely on the ICB classification for the purpose of selecting or weighting their constituents will be adapted to the new ICB framework. Among these, EURO STOXX 50 will be based on 20 Supersectors instead of the current 19.
“Industries keep evolving, and a classification scheme needs to adapt to reflect those changes. Going forward, STOXX indices will be aligned with the new ICB framework. On top of that we will keep several old sector indices as legacy indices to allow clients the time to adapt to the new framework,” said Stephan Flaegel, Global Head of Indices & Benchmarks at Qontigo.
Randolf Roth, Member of the Eurex Executive Board: “Sector derivatives are continuously thriving and growing. It is therefore important that Eurex’s sector offering allows market participants to gain exposure and manage risk across all sectors, including those newly introduced.”
Updates and further details can be found in the methodology section of stoxx.com
Andreas von Brevern (Qontigo)
phone: +49 69 211 14284
Irmgard Thiessen (Eurex)
Phone: +49 69 211 15911
Qontigo is a financial intelligence innovator and a leader in the modernization of investment management, from risk to return. The combination of the company’s world-class indices and best-of-breed analytics, with its technological expertise and customer-driven innovation enables its clients to achieve competitive advantage in a rapidly changing marketplace. Qontigo’s global client base includes the world’s largest financial products issuers, capital owners and asset managers. Created in 2019 through the combination of STOXX, DAX and Axioma, Qontigo is part of Deutsche Börse Group, headquartered in Eschborn with key locations in New York, Zug and London.
STOXX Ltd. is Qontigo’s global index provider, currently calculating a global, comprehensive index family of over 10,000 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets. STOXX is the administrator of the STOXX® and DAX® indices under the European Benchmark Regulation and exercises control over all benchmark administration processes within Qontigo.
STOXX indices are licensed to more than 600 companies around the world as underlyings for Exchange Traded Funds (ETFs), futures and options, structured products and passively managed investment funds.
Eurex is part of Deutsche Börse Group and the marketplace of choice for the global derivatives community. The exchange offers a broad range of international benchmark products and operates the most liquid euro fixed income markets in the world. Eurex Clearing is one of the leading CCPs globally – assuring the safety and integrity of markets while providing innovation in risk management, clearing technology and client asset protection.
STOXX Ltd., Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group and their licensors, research partners or data providers do not make any warranties or representations, express or implied, with respect to the timeliness, sequence, accuracy, completeness, currentness, merchantability, quality or fitness for any particular purpose of its index data and exclude any liability in connection therewith. STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group and their licensors, research partners or data providers are not providing investment advice through the publication of indices or in connection therewith. In particular, the inclusion of a company in an index, its weighting, or the exclusion of a company from an index, does not in any way reflect an opinion of STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group or their licensors, research partners or data providers on the merits of that company. Financial instruments based on the STOXX® indices, DAX® indices or on any other indices supported by STOXX are in no way sponsored, endorsed, sold or promoted by STOXX, Qontigo GmbH, Qontigo Index GmbH, Deutsche Boerse Group or their licensors, research partners or data providers.
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