FTSE QUALITY OF MARKETS CRITERIA (AMERICAS) as at September 2019

COUNTRY NAMES
CRITERIA DEV Canada USA
ADV
Brazil Mexico
SEC
Chile Colombia Peru FRONT Argentina
EMG EMG
World Bank GNI Per Capita Rating, 2018 High High Upper Middle Upper Middle High Upper Middle Upper Middle Upper Middle
Credit Worthiness Investment Investment Speculative Investment Investment Investment Investment Default
Market and Regulatory Environment
Formal stock market regulatory authorities actively monitor
X Pass Pass X Pass Pass X Pass Pass Pass X Pass
market (e.g., SEC, FSA, SFC)

Fair and non-prejudicial treatment of minority shareholders X Pass Pass X Restricted Pass Pass Pass Pass Restricted

No or selective incidence of foreign ownership restrictions X Pass Pass X Pass Restricted Pass Pass Pass Pass

No objection to or significant restrictions or penalties applied to

the investment of capital or the repatriation of capital and X Pass Pass X Pass Pass X Pass Pass Pass X Not Met
income

Developed equity market X Pass Pass X Pass Pass Pass Pass Not Met Not Met

Developed foreign exchange market X Pass Pass X Restricted Pass Restricted Restricted Pass Not Met

No or simple registration process for foreign investors X Pass Pass X Pass Pass Pass Pass Pass Pass
Custody and Settlement
Settlement - Rare incidence of failed trades X Pass Pass X Pass Pass X Pass Pass Pass X Pass

Custody-Sufficient competition to ensure high quality custodian

X Pass Pass X Pass Pass X Pass Pass Restricted Pass
services
Clearing & Settlement - T+2 / T+ 3 X T+2 T+2 X T+2 T+2 X T+2 T+2 T+2 X T+2

Settlement - Free delivery available X Pass Pass Restricted Pass Restricted Restricted Restricted Pass

Custody - Omnibus and segregated account facilities available to

X Pass Pass X Pass Pass Not Met Pass Restricted Restricted
international investors
Dealing Landscape
Brokerage - Sufficient competition to ensure high quality broker
X Pass Pass X Pass Pass X Pass Pass Pass Pass
services
Liquidity - Sufficient broad market liquidity to support sizeable
X Pass Pass X Pass Pass X Restricted Restricted Not Met Not Met
global investment
Transaction costs - implicit and explicit costs to be reasonable
X Pass Pass X Pass Pass X Pass Pass Pass Pass
and competitive
Stock Lending is permitted X Pass Pass Pass Pass Restricted Restricted Restricted Restricted

Short sales permitted X Pass Pass Pass Restricted Restricted Restricted Restricted Restricted

Off-exchange transactions permitted X Pass Pass Not Met Pass Not Met Pass Pass Restricted

Efficient trading mechanism X Pass Pass Pass Pass Pass Pass Pass Pass

Transparency - market depth information / visibility and timely

X Pass Pass X Pass Pass X Pass Pass Restricted X Pass
trade reporting process
Derivatives
Developed Derivatives Market X Pass Pass Pass Pass Not Met Restricted Not Met Restricted

Shading indicates a rating change from March 2019