Korea Exchange Signs Contract with US FactSet for Thematic Index Development

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] The Korea Exchange announced on the 21st that it has signed an information usage and joint index development agreement with FactSet, a global financial information provider, for the development of thematic indices.

Under this agreement, the Korea Exchange will be able to calculate thematic indices using thematic information of domestic listed companies by utilizing FactSet's industry classification system, RBICS (Revere Business Industry Classification System). RBICS is FactSet's proprietary thematic information-specialized industry classification system that divides companies into multiple sectors by business through analysis of financial information and non-financial information such as news and disclosures.

FactSet, headquartered in the United States, provides RBICS and financial information to approximately 150,000 clients worldwide, including institutional investors. It has participated in the development of numerous thematic indices in cooperation with global exchanges and other index providers.

The Korea Exchange plans to actively promote the development of thematic indices in areas with high market interest and expected long-term growth, such as the 4th Industrial Revolution and new digital technologies, by utilizing FactSet's global thematic information.

A Korea Exchange official stated, "Recently, thematic ETFs reflecting the emergence of new industries and diverse investment demands have grown significantly in the global exchange-traded fund (ETF) market," adding, "We expect that the launch of various thematic indices with marketability will stimulate investment demand in the domestic stock market and contribute to the activation of the ETF market."

This content was produced with the assistance of AI translation services.