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At the December 2013 meeting the FTSE Policy Group approved the following rule change to reduce the full market capitalisation size required in order for a company within a Developed Market to qualify for fast entry inclusion to the FTSE Global Equity Index Series. The rule change is effective from 1 January 2014.
Please note: The rule numbering has changed as a result of the addition of a new section 1 to the ground rules.
Old Rule
7.1 Definition of Fast Entry Level
7.1.1 For Developed Markets:
Twice the full market capitalisation of the smallest company that falls wholly within the top 68% of the Index Universe by full market capitalisation of the respective region when ranked according to Rule 6.6.
7.1.2 For Advanced Emerging and Secondary Emerging Markets: The full market capitalisation of the smallest company that falls wholly within the top 68% of the Index Universe by full market capitalisation of the respective region when ranked according to Rule 6.6.
7.1.3 The Fast Entry level for each region will be set at the time of the review and published by FTSE. Each quarter the Fast Entry levels will be adjusted using the performance of the region in the FTSE Global Equity Index Series as a whole, and an updated figure will be published by FTSE.
7.2 Additions Outside of a Review
7.2.1 A stock will be added to the list of constituents of an existing country outside a review when:
A. A new security becomes eligible when its full market capitalisation (i.e. before the application of any investability weightings) is greater than the Fast Entry Level for the relevant region (see Rule 7.1). Eligibility will be determined using the closing price on the first day of trading. The addition of a new security to the index will be implemented after the close of business on the fifth day of trading. In the event of the fifth day of trading being in close proximity to an index review, FTSE may use its discretion to include a fast entrant at the index review date following advance notice.
New Rule
8.1 Definition of Fast Entry Level
Full market capitalisation equal to or greater than the full market capitalisation of the smallest company that falls wholly within the top 68% of the Index Universe by full market capitalisation of the respective region when ranked according to Rule 7.6.
8.1.2 The Fast Entry level for each region will be set at the time of the review and published by FTSE. Each quarter the Fast Entry levels will be adjusted using the performance of the region in the FTSE Global Equity Index Series as a whole, and an updated figure will be published by FTSE.
8.2 Additions Outside of a Review
8.2.1 A stock will be added to the list of constituents of an existing country outside a review when:
A. A new security becomes eligible when its full market capitalisation (i.e. before the application of any investability weightings) is greater than the Fast Entry Level for the relevant region (see Rule 8.1). Eligibility will be determined using the closing price on the first day of trading. The addition of a new security to the index will be implemented after the close of business on the fifth day of trading. In the event of the fifth day of trading being in close proximity to an index review, FTSE may use its discretion to include a fast entrant at the index review date following advance notice.
An updated version of the FTSE Global Equity Index Series Ground Rules is now available on the FTSE website.
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