Further to our notification in February, FTSE confirms a change in the way that shares-in-issue updates will be processed in FTSE indices from April 2003. Share updates resulting from a corporate action will continue to be applied at the same time as the event.
The new arrangements for managing share-in-issue changes are similar to those which currently apply to free float changes. The arrangements for both are set out below:
|-||Shares-in-issue changes||Free float changes|
|Corporate actions||Share-in-issue changes applied at time the corporate action is applied||Free float banding changes applied at the time the corporate action is applied|
|Changes arising outside of corporate actions||Changes of 1% or more are made quarterly||Changes in free float bandings are applied quarterly|
|-||If changes accumulated add up to 10% or more, they are implemented immediately between quarters. A minimum of 4 days notice will be given to users||-|
The quarterly share changes will be made after the close of business on the third Friday of March, June, September and December.
Any exceptions to the above arrangements will be agreed with the Chairman of the relevant FTSE practitioner advisory committee and notified to all users in advance of being implemented. The effectiveness of accumulating changes of 10% or more will be reviewed by the FTSE Equity Indices Committee in September 2003.
The first time the quarterly application of share changes will be applied is after the close of business on 20th June.
For index related enquiries or further information about FTSE please contact:
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|Client Services in Asia Pacific:||Tel: +852 2230 5800 or +65 6223 3738|
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