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 volatility.
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.