The proposed changes would bring the FTSE SmallCap in line with the established design and review of other UK indices, such as the FTSE 100 and FTSE 350 indices. SmallCap investors and companies could benefit from the changes, which would bring increased transparency and improved liquidity.
As a user-driven organisation, FTSE will consult clients and other market users before making final recommendations to the independent Committee on what changes should be made. The consultation begins today and will run until the end of April. The Committee will review the consultation results at its next scheduled meeting in June 2001, and if approved, the changes would be implemented after the December review. Feedback will be gathered via a web-based questionnaire. Full details of the proposed changes can be found at http://www.ftse.com/smcapconsult.html
Mark Makepeace, FTSE Chief Executive commented, “Investors need the most transparent and accurate benchmark available and that’s what FTSE strives to deliver. The proposed changes would provide improved access to the market for smaller companies and their investors by facilitating faster entry to the FTSE SmallCap for small stocks which in turn means increased exposure to investors.”