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STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced changes to its fast entry rules in order to better respond to extraordinary market events in a timely and appropriate manner. Changes being announced today are effective immediately and are the result of a review of the methodology and meeting of the STOXX Advisory Board.
Under the updated fast entry rule, all eligible stocks must have a rank on the latest selection list which lies within the top 50 percent of the number of the respective index’s constituents. For example, stocks must rank between 1 to 25 for indices with 50 constituents, and between 1 and 15 for indices with 30 constituents, to be added to the respective index. This makes the fast entry rule symmetric to the fast exit rule which typically sets the threshold at rank 75 for an index with 50 constituents. Previously, stocks on the selection lists were required to have a rank of 1 to 40 to be eligible for inclusion.
The new rule will be applied to all STOXX indices with fast entry rules: EURO STOXX 50, STOXX Europe 50, STOXX Asia/Pacific 50 Index, STOXX Nordic 30, STOXX North Americas 50 and STOXX GLOBAL MAX TRADED 200 Index. All fast entry additions will continue to be made on a quarterly basis and will be announced after market’s close on the first trading day of the month. There are no changes to fast exit rules.
The STOXX Advisory Board, which is made up of a wide range of market participants and includes representatives from both the sell-side and the buy-side in a broad range of relevant functions, provides independent advice regarding the methodology and rules of the STOXX index family on a regular basis.
Today’s announced changes are the result of STOXX’s commitment to providing indices that are transparent, rules-based and representative.
Please see www.stoxx.com for further information.
