- Changes to the Sterling Denominated Price Requirement and Fast Entry Thresholds will be effective from the September 2025 index review
- Securities which trade in Euros and US Dollars to be considered for potential inclusion to the FTSE UK Index Series, in addition to securities trading in Sterling
- Lowering of the Fast Entry Thresholds will ensure the indices reflect the underlying market accurately and in a timely manner, consequent to significant Initial Public Offerings (IPOs)
FTSE Russell, the global index provider, today announces two changes to the FTSE UK Index Series methodology.
Following a review of the FTSE UK Index Series, FTSE Russell will make changes to the Sterling Denominated Price Requirement and Fast Entry Thresholds, effective from the September 2025 index review.
Sterling Denominated Price Requirement
From September 2025, securities which trade in non-GBP currencies (i.e. Euros or US Dollars) will be considered for potential inclusion to the FTSE UK Index Series, if otherwise eligible. Currently, the FTSE UK Index Eligibility Criteria specifies that only securities trading in Sterling are eligible for inclusion to the FTSE UK Index Series. Inclusion will still require a UK nationality and a listing on the Equity Shares (Commercial Companies) or Closed-ended investment fund categories, as set out in the FTSE UK Index Series ground rules.
As things stand, there are no companies immediately eligible for inclusion on the effective date of this change to the inclusion criteria. However, the actual and longer-term impact to the composition of the indices will be guided by changes to the underlying market and specifically index eligible securities opting to trade in Euros or US Dollars.
Fast Entry Thresholds
FTSE Russell will also lower the Fast Entry Thresholds employed within the FTSE UK Index Series.
If a company listing on the London Stock Exchange ranks 225th or above based on the close price on the first day of unconditional dealings, and has an investable market capitalisation of GBP 1 billion (based on the IPO offering shares minus any restricted holdings, if applicable), then the company, if otherwise eligible, will be placed in the FTSE 100 or FTSE 250, as appropriate, after the close on its fifth day of trading. Concurrently, the lowest rank constituent will be deleted from the applicable index and associated membership changes implemented.
The Fast Entry Thresholds will be reviewed on an annual basis to ensure they remain fit for purpose.
David Sol, Global Head of Policy at FTSE Russell, comments:
“We regularly look at the methodology of our indices to ensure they continue to represent the underlying market and sectors. This includes our recent review of the FTSE UK Index Series, where the companies included are inextricably intertwined with the companies that list on the London Stock Exchange. Whilst there will be no immediate impact on the index composition, these two changes will give the FTSE UK Index Series a timely and more accurate representation of companies that can list in London today and in the future.”
For more information, see the full technical notice and FAQ.
