Global index provider FTSE Russell has reclassified Poland from emerging market to developed market status, effective from September 24. Poland is now classified as one of the 25 most advanced global economies, a list of countries which includes the US, UK, Germany, France, Japan and Australia. Furthermore, Poland is the first country in almost a decade, and the first in Central and Eastern European, to be upgraded to developed market status.

“Poland’s promotion to developed market status within FTSE Russell’s global equity benchmarks is a significant achievement,” said Reza Ghassemieh, chief research officer at FTSE Russell. “The Polish Ministry of Finance and the Warsaw Stock Exchange have long been committed to improving Poland’s capital markets infrastructure and strengthen its economy and today marks the culmination of their efforts to meet the rigorous criteria needed for this classification.”

The upgrade of Poland to developed market status represents an acknowledgement of the progress of the Polish economy and capital markets and is a major step in their development. Poland has all the features of a developed market, including secure trading and post-trade services, as well as advanced infrastructure. The Warsaw Stock Exchange (GPW) uses a state-of-the-art trading system and its listed companies meet the highest standards of corporate governance and disclosure requirements.

“The upgrade to Developed Market status represents a fundamental change in the perception of Poland among global investors,” said Marek Dietl, president of the Warsaw Stock Exchange. “Poland’s reclassification will spark the interest of new investors in Polish issuers and open enormous opportunities for the entire capital market. I do believe that in the long term it will attract bigger capital inflows to GPW.”

FTSE Russell reviews the classification in view of the regulatory environment, infrastructure and quality of the capital market, the depository and clearing system, as well as the status of the derivatives market. The indices serve as a benchmark for leading global investment funds. The classification results in moving companies from FTSE indices of Emerging Markets to FTSE indices of Developed Markets.

FTSE Russell will include 37 Polish companies in its Developed Market indices. One of these, Bank Pekao, announced simultaneously that it would be opening a representative office in London.