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Euronext: Modification Of The Rules For The BEL20â Index

Date 15/07/2004

Following today’s meeting of the BEL20â Supervisor, the following changes to the Rules of the BEL20â Index have been decided and are published as a notice.

These changes, which are valid as from 15 September 2004 (which means first application on the reserve list calculated at the end of August 2004), can be summarized as follows:

  • Eligibility of all Euronext Brussels listed securities which are characteristic for the Belgian market, even if they are not Belgian companies;
  • Volumes as well as prices on other Euronext markets can be taken into account for the calculation of data and index;
  • More detailed definition of free float;
  • Withdrawal of one velocity criterion (10% of total market capitalisation); only the free float velocity criterion is kept (30% for new index candidates, 25% for existing index components);
  • Adaptation of free float bands to the immediate superior level of 5% instead of the present 15-20-30-40-50-75-100 bands;
  • Specification of data taken into account when applying the fast entry rule;
  • Adjustment of the index’ governance structure in line with the Euronext Indices structure.
A simulation of the new rules based on the end of June figures did not reveal any change in the current selection of the BEL20â companies.

The new consolidated (in revised) version of the Rules of the BEL20â Index can be downloaded by clicking here.