Index Rules

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FTSE Policy Group

  • The FTSE Policy Group, whose membership is representative of users of the 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 overseeing and maintaining the Ground Rules for the Management of the FTSE UK Series. Changes and exceptions to the Ground Rules may be made only as permitted by Rule 10.1
  • 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, as required

FTSE Regional Committees

The FTSE Equity Indices Committee has established three Regional Committees:

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

TThe FTSE European/Middle East/Africa Regional Committee undertakes the reviews of the FTSE UK Series and ensures that constituent changes and index calculations are made in accordance with the Ground Rules.

FTSE Global Classification Committee

The FTSE Global Classification Committee is responsible for the industry classification of constituents of the FTSE Actuaries Share Indices (see Rule 8) within the FTSE Global Classification System. The Committee may recommend changes to the Classification System and Management Rules thereof to the FTSE Policy Group.

Committee Membership

  • FTSE appoints a Chairman and Deputy Chairman of the FTSE Policy Group. The FTSE Policy Group appoints the Chairman to the FTSE European/Middle East/Africa Regional Committee. The Chairman of this committee must be selected from the membership of the FTSE Policy Group. 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 Europe/Middle East/Africa Regional Committee are selected from the membership of the FTSE Policy Group and are collectively responsible for approving constituent changes to the FTSE Actuaries Share Indices between meetings of the Committee on advice from the Secretary to the Committee and as permitted and specified by these Ground Rules. Two nominated deputies are appointed from the Committee to deputise for the Chairman and Deputy Chairman in their absence or when additional viewpoints are required by the Chairman and Deputy Chairman

Secretary To The FTSE Policy Group And FTSE Regional Committees

  • A Secretary to the FTSE Policy Group and FTSE Europe/Middle East/Africa Regional Committee will be appointed by FTSE to support the work of these bodies. The Secretary will maintain a record of constituent changes to the FTSE Actuaries Share Indices and will be responsible for the timely publication of all constituent changes
  • The Secretary will be responsible for conducting the periodic review of the FTSE Actuaries UK Share Indices and will recommend for the approval of the FTSE Europe/Middle East/Africa Regional Committee which companies, if any, should be inserted and deleted at the periodic review (see Rule 7)
  • Other than the periodic review, the Secretary will seek the approval of the Chairman and Deputy Chairman of the FTSE Europe/Middle East/Africa Regional Committee before removing or inserting constituents to the FTSE Actuaries UK Share Indices (see Rule 7). In the absence of either or both the Chairman and Deputy Chairman, the views of their nominated deputies shall be sought. 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 FTSE Europe/Middle East/Africa Regional Committee of all constituent changes as soon as possible after the change has been approved and he/she will be responsible for the timely publication of changes of constituents

FTSE

  • FTSE is responsible for the operation of all the FTSE Actuaries UK Share 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 Ground Rules
  • Changes to constituent weightings will be made by FTSE in accordance with the Ground Rules. FTSE will inform the Secretary to the FTSE Policy Group and 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. The weightings of constituents in the real time indices shall be used in the calculation of the end of day indices
  • FTSE is also be responsible for monitoring the performance of the FTSE Indices throughout the day and will determine whether the status of each index should be Firm, Indicative, or Held (see Rule 2.1). FTSE will report to the FTSE Europe/Middle East/Africa Regional Committee on issues arising from the index calculation and administration process