FTSE announces that it will move to use actual free float (rounded up to the next 1%) in the FTSE UK Index Series with effect from the June 2012 review. This decision has been approved by the FTSE EMEA Regional Committee and the FTSE Policy Group and has been taken in response to feedback received from recent client consultations.
To ensure there is transparency in the free float figures used in the UK Index Series, FTSE proposes to make these available in advance to subscribing clients. Floats for FTSE 100 stocks will be published in March 2012, FTSE 250 stocks in April and Small Cap stocks in May. At initial implementation, the free float of UK index constituents will move to accurate float (rounded up to the nearest 1%) unless the actual float is within a 3% buffer of the constituent’s current banded float. Subsequent changes to free float will be made at the quarterly reviews if the revised float is more than 3% from the current figure. Changes to floats between reviews will be made in response to corporate events, secondary offerings or significant changes to shares in issue.
A follow-up notice will be released to FTSE Clients in May with links to the revised UK Index Series Ground Rules. A separate notice will be released to Clients later in the year detailing FTSE’s intentions with regard to its other index series including the FTSE Global Equity Index Series.
