Below are frequently asked questions about Thomson Reuters Business Classification (TRBC). Feel free to contact us for answers to your other questions.

What is Thomson Reuters Business Classification (TRBC)?

Thomson Reuters Business Classification (TRBC) is a global industry classification system that is owned and operated by Thomson Reuters. Developed in 2003, TRBC is an independent, market oriented classification system designed to track and display the primary business of a corporation using Thomson Reuters proprietary data, methodology and standards. TRBC is available today to more than 200,000 Thomson Reuters users and is used daily by thousands of buy-side investors and sell side research providers. We classify approximately 71,500 unique companies in more than 130 different countries.

Who uses TRBC?
The adoption of TRBC has been increasing consistently over the past two years, supported by a wide desktop user base and growth on the data feeds business worldwide. All groups involved in the investment process are already using TRBC as an alternative to Government based classifications or other less global classifications. Typical users include Sell Side Analysts, Buyside Portfolio Managers, Asset and Portfolio Managers, Index Providers and Exchanges to name a few.
Where can I see TRBC?

TRBC will be available through all Thomson Reuters desktops and data feed solutions. Some products where it can be seen already include Thomson Reuters Eikon, Reuters 3000 Xtra, Reuters Knowledge, Reuters Datascope Equities and Select, Reuters Knowledge Direct and Thomson Portfolio Analytics.

What are the advantages of TRBC?

TRBC allows clients to identify, analyze and track companies using a transparent yet comprehensive global standard. Our market oriented schema is useful for global markets, not just the US or Europe, with more than 70,000 public companies covered. Having more companies in more countries than any other classification system means that it is easier to analyze companies for accurate benchmarking purposes, peer comparison and sector rotation. TRBC makes the most of Thomson Reuters core strengths and delivers a better schema:

  • Builds on our experience as a global data provider and relies on Reuters Fundamentals, the most comprehensive fundamentals database in the world
  • Frequent rebalance and review. Our team of analysts has access to global filings data and is constantly monitoring companies for changes of activity
  • An up to data schema with more relevant industries (eg. Renewable Energy)
  • Well defined sectors, detailed enough to focus on particular industries whilst still providing enough constituents and data for effective analysis
How does TRBC compare to other well known Market Based Classification schemes?

The journal of indexes published a piece comparing sector classification systems. This article compares TRBC with its two closest competitors by looking at the size and depth of their securities universes; the structure of their sorting methodologies; and inter-sector correlation analysis. The authors conclude that TRBC stands out as the most useful sector classification system for building sector indices and ultimately for ETF investors.

Has any research been done into the accuracy of TRBC?

Our internal research teams regularly investigate the effectiveness of TRBC and propose enhancements to our methodology. The latest research report produced by the Thomson Reuters Quantitative Research department was published in the Journal of Indexes. This article uses TRBC to show how stocks within TRBC sectors and industry groups have more correlation than those outside them. View article.

What does “market-oriented system” mean?

TRBC is a market-based classification schema, which is a fundamental difference to other production-oriented classifications, such as the North American Industry Classification System (NAICS) by the US Department of Labor. A market-based classification schema emphasizes the usage of a product rather than the materials used for the manufacturing process. For example, a chair used in the office is considered as office equipment whilst a chair installed in a car is considered as an auto part. Similarly, catering services to airlines are considered as an airport service rather than a restaurant.

How do we assign a TRBC Code?

TRBC assignments are supported by a group of expert data analysts with in-depth knowledge of the markets they support and the methodology they use combines a rigorous and independent approach.

How often are TRBC codes reviewed?

Company assignments are reviewed when quarterly earnings are filled and the schema itself is reviewed every year. Please view our methodology document for more details.

Is TRBC assigned at the company level or security level?

We assign TRBC codes at a company level. All securities are mapped to companies, so each will also have a TRBC code.

What is TRBC Direct?

TRBC is the methodology and TRBC Direct is a time series product that provides over 10 years of historical information for the companies covered by TRBC. TRBC Direct is available to Reuters Knowledge Direct users and will soon be part of Thomson Quantitative Analytics and Thomson Datastream Data Loader. For more information please contact us.

Which indices are based on TRBC?

TRBC is the classification structure that is supporting all Thomson Reuters sector indices. Our 10,000+ proprietary sector indices are available for more than 50 countries and 20 different regions.

Where can I find the descriptions of each industry?

Download detailed descriptions for each industry 242KB