Rating The Global Financial System
The Global Financial Complexity Index™ (GFCI™) is a meta-index which measures the complexity of the global financial system. The GFCI™ is based on the closing values of the indices of the World’s main market indices and is computed on a daily basis. Essential to the global investor, the GFCI™ measures the ‘temperature’ of the entire international financial system. In essence, the GFCI™ provides a new and modern measure of systemic volatility. The GFCI™ may be consulted in BLOOMBERG Terminals.
The index is based on the past six months of trading. Its values are absolute (>0). High values indicate intense interaction between the various market indices which are the following:
AORD, BSESN, HSI, JKSE, KLSE, KS11, N225, NSEI, NZ50, STI, TWII, 000001.SS, ATX, BFX, FCHI, FTSE, GDAXI, IBEX, SSMI, FTSEMIB.MI, IETP, STOXX50E, OMXH25, OMXSPI, OMXC20, DJA, DJI, DJT, DJU, GSPC, IXIC, MID, NDX, NYI, NYA, RUA, RUI, RUT, SML, BVSP, GSPTSE, MERV, MXX, TA100, BIST 100, IDX, TASI, TA-25, SET
The function of the GFCI™ is to combine the above 50 indices into one single meta-index.
The GFCI is computed on a daily basis but may be delivered at an arbitrary frequency, including near-real time.
In addition to the Global FCI, there are also regional Financial Complexity Indices: Americas, EMEA and APAC:
The fact that all of the indices are normalized means they can be compared.
The breakdown of the various Financial Complexity Indices into components may also be viewed in mobile devices.