• South Korean government bonds will be added to the FTSE World Government Bond Index (WGBI) with inclusion starting in November 2025
• India will be added to the FTSE Emerging Markets Government Bond Index (EMGBI) with inclusion starting in September 2025
• Price source change to Tradeweb FTSE Closing Prices for US Treasuries, European Government Bonds and UK Gilts in FTSE global fixed income indices
• Egypt will be removed from the FTSE Equity Country Classification Watch List for potential demotion from Secondary Emerging to Unclassified market status
• Greece will be added to the FTSE Equity Country Classification Watch List for possible reclassification from Advanced Emerging to Developed market status

FTSE Russell, the global index provider, has published the results of its annual country classification review for countries monitored by its global equity and fixed income indices.

Fixed Income

FTSE Russell is pleased to announce that South Korea will be reclassified from Market Accessibility 1 to 2, and South Korean government bonds will be added to the FTSE World Government Bond Index (WGBI), effective with November 2025 index profiles and phased in over a one-year period on a quarterly basis. Since being placed on the Watch List in September 2022, several initiatives intended to improve the accessibility of South Korean government bonds for international investors have been implemented by market authorities. Most recently, these efforts have facilitated connectivity with International Central Securities Depositaries in June 2024 for the South Korean bond market and permitted third-party foreign exchange for South Korean won starting in July 2024. Following this confirmatory announcement regarding index inclusion, FTSE Russell encourages global financial market infrastructure providers to continue their readiness activities to support future investment in the South Korean government bond market by WGBI users and leverage the benefits of the market structure reforms. FTSE Russell continues to welcome feedback from index stakeholders on such process to ensure a frictionless inclusion of the South Korea government bond market in the WGBI.

Nikki Stefanelli, Head of Fixed Income, Currencies and Commodities Index Policy at FTSE Russell, comments: “We congratulate South Korean market authorities on their efforts to expand and encourage global investment in their local government bond market. FTSE Russell have closely monitored the capital markets reforms that have been implemented by South Korean market authorities over the past two years and their effectiveness in achieving the rigorous accessibility criteria for WGBI inclusion. We look forward to continuing to support the market as it undertakes readiness activities ahead of index inclusion at the end of next year.”

Mr. Sang-mok Choi, Deputy Prime Minister and Minister of Finance of Korea comments: “Over the last two years, the South Korean government has announced a series of initiatives to strengthen its capital markets for both domestic and international investors, which have now been successfully implemented. Over this time, we have had a positive engagement with FTSE Russell and international market participants on the impact of these efforts and their ability to facilitate inclusion of South Korean government bonds in the FTSE WGBI, which requires the highest level of market accessibility. We are pleased with the process, and more importantly the outcome with FTSE Russell’s decision today.  The MOEF are committed to continuing and strengthening its engagement with market participants to ensure a smooth index inclusion starting in November 2025, which will bring a welcomed increase in international investment in our capital markets.”

FTSE Russell announces that the Market Accessibility Level for India will be reclassified from 0 to 1, and Indian government bonds will be included in the FTSE Emerging Markets Government Bond Index (EMGBI), starting in September 2025. This decision reflects the continued progress in the accessibility of the market for these securities for international investors and the growing importance of the Indian government bond market in mainstream global emerging markets bond portfolios. FTSE Russell thanks the Reserve Bank of India for its continued dialogue and commitment to facilitating international investment in its local market.

Price source change to Tradeweb FTSE closing prices for the US, Eurozone and UK government markets

FTSE Russell are pleased to announce a price source change for US Treasuries, European government bonds and UK Gilts to Tradeweb FTSE Closing Prices, effective March 2025. The change will be effective across all FTSE global fixed income indices, including the FTSE World Government Bond Index (WGBI). Tradeweb FTSE closing bond prices are based on bid-side and offer-side price quotes supplied by market makers to Tradeweb’s electronic trading platform for institutional dealer and clients during a pre-determined collection window each day. The closing prices, which are derived from these quotes, offer index users a more representative, transparent and robust approach to valuing fixed income securities. In its role as benchmark administrator for these closing prices, FTSE Russell is in a unique position to ensure they are calculated in line with its rigorous governance standards.

The full FTSE Fixed Income Country Classification Announcement can be found here: FTSE Fixed Income Country Classification

Equity 

Egypt is being removed from the Watch List for potential demotion from Secondary Emerging to Unclassified market status and being retained as a Secondary Emerging within the Equity Country Classification framework. In March 2024, market participants reported that the previous delays in the ability of international institutional investors to repatriate capital from Egypt had been addressed and since then the foreign exchange queues have remained clear.

On 03 July 2024, FTSE Russell announced the reclassification of Pakistan from Secondary Emerging to Frontier market status effective from the open on Monday 23 September 2024.

Vietnam remains on the Watch List for a possible reclassification from Frontier to Secondary Emerging market status as the market has yet to meet the settlement requirements stipulated in the Country Classification Framework. The Vietnamese authorities remain committed to pursuing the various regulatory reforms required to attain Emerging market status.

Greece is being added to the Watch List for possible reclassification from Advanced Emerging to Developed market status as the market meets the 22 FTSE Quality of Markets criteria required for attaining Developed market status.

The full FTSE Equity Country Classification Announcement can be found here: FTSE Equity Country Classification

David Sol, Global Head of Policy at FTSE Russell, comments: “At the heart of FTSE Russell’s approach to the classification of equity and fixed income markets is the accessibility of global financial markets.  We strongly believe that the continuous engagement with the investment community, stock exchanges, regulators and other stakeholders reflects best practice and allows us to design and evolve indices that can be readily followed and replicated. The completion of the 2024 Country Classification Review is an important milestone in ensuring that FTSE Russell’s equity and fixed income indices remain fit for purpose”.

More information on the Equity Country Classification framework and Fixed Income Country Classification framework can be found on our website. The next update will be published in March 2025.

Source: FTSE Russell