Qontigo has updated and expanded its sector index offering following the recent Industry Classification Benchmark (ICB) framework.
The firm has identified four supersectors for which a range of indices will be launched using the Euro Stoxx and Stoxx Europe 600 will be used as the parent indices.
The supersectors include consumer products and services, energy, food, beverage and tobacco, and personal care, drug and grocery stores.
Furthermore, derivatives exchange Eurex is supplementing its offering with the corresponding futures and options.
To facilitate the ICB, Qontigo will retain the old indices linked to former supersectors oil and gas, personal and household goods and foods and beverage as legacy indices.
The ICB is a globally recognised standard for categorising companies and securities where each stock in the investible universe is uniquely classified based on the company’s primary revenue source.
The companies are then classified into four different areas depending on their respective business environments which includes: industries, supersectors, sectors and subsectors.
Qontigo will be making the following changes to its Stoxx index landscape:
- The ICB supersector oil and gas will evolve into the supersector energy
- The ICB supersector food and beverages will evolve into supersector food, beverage and tobacco
- The UCB supersector personal and household goods will evolve into supersector consumer products and services
- ICB is introducing a new supersector personal care, drug and grocery stores for which Qontigo will launch the corresponding supersector indices
Other indices that rely on the ICB classification for the purpose of selecting or weighting will be adapted to the ICB framework.
Stephan Flaegel, global head of indices and benchmarks at Qontigo said: “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 and 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.”