- New capping rule will apply for DAX, MDAX, SDAX and TecDAX
- Applicable for the first time with the index review March 2024
STOXX Ltd. will adjust the capping in the DAX index family from 10 to 15 per cent. This was preceded by a broad market consultation which lasted from 11 October to 8 November 2023. The responses reflected a wide range of considerations from different stakeholders. A majority of participants were in favour of raising the capping limit to 15 percent.
With this capping limit, STOXX is aligning the DAX index family with international standards. The capping limit defines how high the maximum weight of an individual company may be in the index. If the weighting rises above this value, the weighting is adjusted accordingly every three months as part of the index review.
A capping at 10 per cent resulted in 38 incidents in the DAX index in the course of the past ten years. Not a single company would have been capped if the limit had been 15 per cent instead.
The capping limit of 15 per cent will become applicable for the first time with the index review in March, which will become effective on 18 March 2024. The DAX rulebook will then be adjusted accordingly.
The results of the market consultation can be found here.
DAX®, MDAX®, SDAX® and TecDAX® are registered trademarks of ISS STOXX Index GmbH.
