Rule change concerning replacements
The rule change encompasses the new principle that in case of a removal of an index constituent such a company will no longer be replaced immediately, but at the next quarterly review. This means that the index could temporarily consist of fewer than 100 constituents. The same principle will be applied to split ups, which might lead to a situation where the index temporarily consists of more than 100 companies. The rule change will leave the reserve list obsolete.
Since the rule change is not in conflict with the interests of any party involved with the indices and swift implementation is desirable, the Steering committee has decided this rule change to come into effect immediately.
Rule change treatment of IPO's
Currently there are no explicit rules on the assessment of liquidity of newly listed companies. The Euronext Indices Steering Committee therefore adopted the formulation of rules with respect to the treatment of IPO's. The new rules entail that in case of an IPO the company will only be considered for the index after a minimum of 40 trading days while the velocity will be calculated excluding the first 20 days of trading. These rules will come into effect on September 6th, observing the three months notice period.
Rule change Liquidity rule
It is both in the interest of listed companies and investors to include only securities with a "track record" on a stable level of liquidity. It is therefore decided to demand the company to fulfill the present liquidity criteria, velocity and maximum number of non-trading days, in two consecutive reviews rather than in one.
The rule change will come into effect on September 6th, observing the three months notice period.
