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Index Rules

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FTSE Policy Group

  • The FTSE Policy Group (previously the FTSE Equity Indices Committee), whose membership is representative of users of FTSE Indices, is established by FTSE as an independent committee. The FTSE Policy Group is responsible for determining major policy issues and monitoring the activities of the FTSE Regional Committees
  • The Policy Group is responsible for maintaining the Ground Rules for the Management of the FTSE Global Equity Index Series. Changes and exceptions to the Ground Rules may only be made as permitted by Ground Rule 8.1
  • The Policy Group ensures that a consistent approach is applied to the selection of constituents and the application of corporate events by the FTSE Regional Committees
  • The Policy Group may establish sub-committees to undertake any of these duties or to consider particular issues in depth
  • The Policy Group meets quarterly or more frequently, if required

FTSE Regional Committees

The FTSE Equity Indices Committee has established three Regional Committees:

  • Americas
  • Europe / Middle East / Africa
  • Asia / Pacific

The purpose of the Regional Committees is to undertake the reviews of FTSE Global Equity Index Series (see Ground Rule 6) and to ensure that constituent changes and index calculations are made in accordance with the Ground Rules.

Committee Membership

  • FTSE appoints the Chairman and Deputy Chairman of the FTSE Policy Group. The FTSE Policy Group appoints the Chairman and Deputy Chairman of the FTSE Regional Committees. The relevant Chairman, or in his absence Deputy Chairman, will chair meetings of the respective committee and will represent that committee outside meetings
  • The Chairman and Deputy Chairman of the FTSE Policy Group are collectively responsible for approving constituent changes to the FTSE Global Equity Index Series between meetings of the Committee, on advice from the Secretary to the Committee and as permitted and as specified by the Ground Rules
  • Terms of Reference for all Committees are available from FTSE

Secretary To The FTSE Policy Group And FTSE Equity And Regional Indices Committees

  • The Secretary to the FTSE Policy Group is appointed by FTSE to support the work of the FTSE Policy Group and FTSE Regional Committees. The Secretary will maintain a record of constituent changes to the FTSE Global Equity Index Series and is responsible for the timely publication of all constituent changes
  • The Secretary is responsible for:
    • conducting the periodic country reviews of the FTSE Global Equity Index Series and
    • recommending (for the approval of the FTSE Regional Committees) which companies, if any, should be inserted and deleted at the periodic review (see Ground Rule 6)
  • Other than the periodic review, the Secretary will seek the approval of the Chairman and Deputy Chairman of the appropriate FTSE Regional Committee before removing or inserting constituents of the FTSE Global Equity Index Series
  • The Chairman or Deputy Chairman (or their deputies) may request that a full meeting of the Committee be convened to consider a proposed change of constituent should any one of them consider it appropriate to do so
  • The Secretary will inform the appropriate FTSE Regional Committee of all constituent changes as soon as possible after the change has been approved and he/she is responsible for the timely publication of changes of constituents

FTSE

FTSE is responsible for the operation of all the FTSE Indices. FTSE will maintain records of the market capitalisation of all constituents and reserve companies and will make changes to the constituents and their weightings in accordance with the Ground Rules. FTSE will carry out reviews and implement the resulting constituent changes as required by the index rules.

Changes to constituent weightings will be made by FTSE in accordance with the Ground Rules. FTSE will inform the Secretary to the Regional Indices Committee of all changes to constituent weightings as soon as possible after the new weightings have been determined. FTSE is responsible for publicising and keeping a record of all changes to constituent weightings.

Status of These Ground Rules

  • These Ground Rules are a guide to the policies and procedures applying at the date of publication to the operation and maintenance of the FTSE Global Equity Index Series. They have been prepared and approved by the FTSE Policy Group. However, these policies and procedures, and their precise application, are subject to variation and periodic review
  • The purpose of publishing this guide is to provide information about the general basis on which decisions relating to the construction and publication of FTSE Global Equity Index Series are currently made
  • In light of the intended purpose of this guide, and the likely variation and periodic review of the policies and procedures it contains, no liability whether as a result of negligence or otherwise is accepted by FTSE, The Institute of Actuaries, The Faculty of Actuaries or any members of the FTSE Policy Group or FTSE Regional Committees (or any other person concerned with the preparation or publication of this guide) for any losses, damages, claims and expenses suffered by any person as a result of:
    • any reliance on this guide or the FTSE All-World Index Series or FTSE Global Small Cap Index Series or any constituent data; and/or
    • any errors or inaccuracies in this guide; and/or
    • any non-application or misapplication of the policies or procedures described in this guide; and/or
    • any errors or inaccuracies in the compilation or calculation of the FTSE All-World Index Series or FTSE Global Small Cap Index Series or of any constituent data