Euronext Bel20 Index: New Rules To Be Phased In By Stages

On 20 December 2004, Euronext announced the launch of a new set of indices in Brussels as part of its drive to raise the visibility and liquidity of stocks listed on its markets.

The reform is intended to ensure that Belgian indices make up a consistent series matching investors’ expectations and international standards.

However, considering the concerns of a number of companies as to the timeframe for implementation, the Bel20 Steering Committee has adopted the following temporary provisions.

In the first year, the companies currently represented in the Bel20 index will not have to comply with the new requirements for free-float capitalization. This provision will be extended for one year for the same companies that still fail to meet these requirements on 31 December 2005 but have made adequate progress from the same date in 2004. Following review at 31 December 2006, only companies complying with all requirements will remain in the index.

The companies to which these temporary measures apply will also be included in the BEL MID index.

With this provision, Euronext aims to allow the companies concerned sufficient time to adapt, while at the same enhancing the tradability of the Bel20 by stages and setting up benchmarks for mid and small-cap stocks, thereby benefiting all market participants.

Click here to download the Bel20 index components (at close on 30 November 2004).