Intro text - Market Classification 2023

MSCI evaluates equity markets around the world each year to determine whether they should be classified as a developed, emerging, frontier or standalone market. This review is critical to how we construct our equity market indexes.

We consider the views and practices of the international investment community and assess a market’s economic development, accessibility and investability.

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Criteria - Market Classification 2023

The MSCI Market Classification Framework uses three criteria to evaluate markets:

  • Economic development

    Considers economic development sustainability; only used to determine classification of developed markets

  • Size and liquidity requirements

    Determines those securities that meet the minimum investability requirements of the MSCI Global Standard Indexes

  • Market accessibility

    Aims to reflect international institutional investing experiences in a given equity market based on five market accessibility criteria

As part of the annual market classification review, MSCI communicates the list and analysis of equity markets under each category (Developed, Emerging, Frontier and Standalone), as well as the markets, if any, under review for potential market reclassification in the upcoming cycle.

For more information, see the MSCI Market Classification Framework (PDF, 304 KB)

Why - Market Classification 2023

Why does a market classification matter?

A market classification is a key input in index construction. By grouping markets according to common characteristics, we are helping investors better understand and compare different markets.

In addition, MSCI’s Market Classification includes a Market Accessibility review which seeks to reflect investors’ real-life experience in accessing and transacting in each market, in addition to a detailed and thorough analysis of existing regulatory frameworks.

The Annual Market Classification Review is designed to ensure that MSCI indexes accurately group the equity markets they measure to allow investors to compare markets and appropriately aggregate markets into regions and other combinations. We also aim to provide ample notice to investors and markets of potential changes to minimize impact.

Every June, MSCI first announces the results of the Annual Market Accessibility Review which covers all markets within our investable universe. Shortly after, MSCI announces the results of the Annual Market Classification Review.


Results of 2023 MSCI Annual Market Classification Review

On June 22, 2023, MSCI announced the results of the 2023 Annual Market Classification Review. In this year's review, MSCI:

  • Welcomes the proposed measures aimed at improving the accessibility of the Korean equity market to international investors, and will be monitoring their implementation and effectiveness over time
  • Extends the consultation on the potential reclassification of the MSCI Nigeria Indexes from Frontier to Standalone Market status following recent developments in the FX market - Consultation Document (PDF, 372 KB)
  • Indicates a potential consultation on a reclassification proposal for Egypt in case of further deterioration in market accessibility
  • Continues closely monitoring the market accessibility of the Sri Lankan, Kenyan and Bangladesh equity markets
  • Highlights the evolution of clearing and settlement cycles across global markets
  • Reminds on upcoming changes to the MSCI Frontier Markets Indexes

2023 MSCI Annual Market Classification Review Press Release (PDF, 180 KB)

On October 26, 2023 MSCI announced that the MSCI Nigeria Indexes will be reclassified from Frontier Markets to Standalone Markets status in one step coinciding with the February 2024 Index Review.
MSCI Nigeria Indexes Press Release (PDF, 111 KB)


Results of 2023 MSCI Global Market Accessibility Review

On June 8, 2023, MSCI announced the results of the 2023 Global Market Accessibility Review. Following the announcement of the 2023 Annual Market Classification Review, the detailed report of the MSCI 2023 Global Market Accessibility Review now includes the assessment on Nigeria, thereby covering 84 markets.

The results of the MSCI Global Market Accessibility Review are announced before the MSCI Annual Market Classification Review in June of each year.

The table below reflects the current Market Classification. Please refer to the latest Annual Market Classification Review and Press Release for details.

Table - Market Classification 2023

Closing - Market Classification 2023

The MSCI’s Standalone Markets are broadly classified into two groups:

  • Newly eligible markets. Newly eligible markets may either be new markets, previously not covered by MSCI or markets that were closed to a specific group(s) of investors.
  • Markets previously classified under the Developed, Emerging or Frontier Markets categories. A reclassification to a Standalone status may occur in the case of severe deterioration in market accessibility or size and liquidity.

Previous Market Reclassifications (XLSX, 36 KB)

Footnotes - Market Classification 2023

1 The MSCI Standalone Market Indexes are not included in the MSCI Emerging Markets Index or MSCI Frontier Markets Index. However, these indexes use either the Emerging Markets or the Frontier Markets methodological criteria concerning size and liquidity.

2 EMEA – Europe, Middle East, and Africa

3 APAC – Asia Pacific

* The West African Economic and Monetary Union (WAEMU) consists of the following countries: Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo. Currently the MSCI WAEMU Indexes include only securities classified in Benin, Burkina Faso, Ivory Coast, Niger and Senegal.

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