ATHENS, Sept 23 (Reuters) - Index compiler FTSE on Thursday promoted the stock markets of Turkey, the Czech Republic and Malaysia to advanced emerging status and kept Greece on watch for a possible demotion after an annual country review.
"Global markets are constantly changing and more countries are opening their markets to international investment," FTSE Group Chief Executive Mark Makepeace said in a statement.
"The Czech Republic, Malaysia and Turkey were promoted (from secondary emerging)...following significant changes to their regulations and investment procedures," he said.
FTSE classifies global equity markets as developed, advanced emerging, secondary emerging or frontier within its equity index series. The indices are tracked by institutional investors.
Markets are assessed against criteria covering custody and settlement, the dealing landscape, derivatives and the regulatory environment.
"China A shares, Colombia, Greece, Kazakhstan, Kuwait and Taiwan will remain on the watch list and will be reviewed again in September 2011," FTSE said.
Greece's stock market kept its developed-market status but remained on FTSE's watchlist for a possible downgrade to advanced emerging for another year, as expected.
Greece gained mature market status in 2001 after joining the euro zone. It was first placed on watch for possible demotion in 2006. If implemented, the move could prompt an exodus by index funds that track mature markets.
Greece has addressed most of the issues raised by FTSE, such as off-exchange transactions which have been enabled by MiFID and stock lending which has been liberalised. One remaining issue relates to omnibus accounts.
The Greek exchange requires data on the final investor-owner of shares, while FTSE's clients desire information that stops at the level of broker.
FTSE WATCH LIST
China A shares - possible inclusion as secondary emerging
Colombia - possible move from secondary emerging to frontier
Ghana - possible inclusion as frontier
Greece - possible move from developed to advanced emerging
Kazakhstan - possible inclusion as frontier
Kuwait - possible inclusion as secondary emerging
Taiwan - possible promotion to developed from advanced enmerging
Thailand - possible promotion to advanced emerging from secondary (Reporting by George Georgiopoulos; Editing by Michael Shields)