Index Changes
FTSE does not adjust the shares in issue figure, used to calculate constituent weightings, until the cumulative increases or decreases exceed 10% of the current FTSE constituent shares in issue . This insulates indices against frequent minor adjustments to constituent weightings and reduces the need to adjust positions as a result of incidental issue changes.
Share changes following corporate events such as company mergers, de-mergers etc will be dealt with in the normal manner i.e. effective in the index on the effective day of the action. Notification of corporate event-driven changes is provided through the issue of a Technical Release and through the FTSE Trader and Tracker products.
Cumulative Shares in Issue example: | FTSE Implementation: | |
Day 1 | Company A increases shares in issue by 3% of total capital | No Changes |
| Day 2 | Company A increases shares in issue by a further 7% of the original total capital | No Changes (as 10% of original capital has not been breached) |
| Day 3 | Company A increases shares in issue by 1% of total capital | Cumulative total is now 11% of total shares in issue 1. FTSE increase Company A's shares in issue figure in relevant indices by 11% for opening of Day 4 2. FTSE Trader / FTSE Tracker is updated and sent out after market close |