In accordance with the new methodology, aggregated capitalization of each type of securities will be calculated using a correction factor that will take into account the free float for this issue of the security. Correction factors will be determined by the RTS Information Committee each quarter based on expert estimations and rounded off to 5%. An expert estimation is to be based on information disclosed by companies-issuers, information agencies data, and research reports published by companies – members of the Information Committee.
Formulas, used in index calculation, will also be modified. To ensure better transparency, the Information Committee introduced the correction coefficient that will take into account possible changes in the list of index constituents. Previously, once the list changed, new initial values of the Index and total market capitalization had to be calculated. The newly introduced coefficient will allow for automatic correction of the formula.
The RTS Index, the benchmark Russian securities market indicator, has been calculated since 1995 as the market capitalization-weighted index based on the Classic market trading data. The Index is calculated on thirty-minute intervals. RTS Current Quotes Index (previously known as RTS Technical Index) has been calculated since 1998 as the market capitalization-weighted index based on the best quotes, on one-minute intervals. Until July 1st the old methodology based on total number of shares outstanding will be applied.
