Index Changes
FTSE shares in issue used in index calculations under the following three circumstances. This insulates indices against frequent minor adjustments to constituent weightings and reduces the need to adjust positions as a result of incidental issue changes.
1. 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.
2. Share changes resulting in a cumulative increase or decrease exceeding 10% of the current FTSE constituent shares in issue, illustrated by the following table. Notification of 10% 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 announce 11% increase in Company A's shares in issue figure in relevant indices via Technical release with 4 days advance notification 2. FTSE Trader / FTSE Tracker is updated and sent out after market close 3. Accumulated share changes representing USD 2bn of a company's market capitalisation, illustrated by the following table. Notification of USD 2bn 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 less than 10% of total capital which represents less than USD 2bn of its market capitalisation | No Changes |
| Day 2 | Company A increases shares in issue by a further percentage resulting in an accumulated total of less than 10% of the original total capital which represents less than USD 2bn of its market capitalisation | No Changes (as neither 10% of original capital or USD 2bn of its market capitalisation has been breached) |
| Day 3 | Company A increases shares in issue by a further percentage representing USD 2bn of its market capitalisation | Cumulative total now represents USD 2bn of its market capitalisation issue 1. FTSE announce increase in Company A's shares in issue figure in relevant indices via Technical release with 4 days advance notification 2. FTSE Trader / FTSE Tracker is updated and sent out after market close |
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