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18/02/2009 Adopted fast exit rule for major Blue-chip Indexes

The leading provider of European equity indexes …

 

STOXX Ltd., today announced the adoption of a fast exit rule for the blue-chip indexes Dow Jones EURO STOXX 50, Dow Jones STOXX 50 and Dow Jones STOXX Nordic 30.

The new rule, which is effective with the start of trading on Tuesday, February 17, 2009, states that a component is deleted from the Dow Jones EURO STOXX 50 or Dow Jones STOXX 50 indexes if it ranks 75 or below on the respective index’s monthly selection lists for a consecutive period of two months.

Components of the Dow Jones STOXX Nordic 30 Index will be deleted if they rank 50 or below on the index’s monthly selection list over the same time period.

Deleted components for all three indexes will be replaced by the highest ranking non-components on the monthly selection list. Component changes will be announced on the first trading day of the month following the publication of the monthly selection lists, implemented on the close of the fifth trading day and effective the next trading day.

Previously, companies were retained in the index until the annual component review in September, regardless of market capitalization rank.

 

The first possible component changes resulting from the addition of this new rule will be implemented in April 2009, with the second consecutive publication of the monthly selection lists after the addition of the new rule.

Today’s enhancement of the index methodology is a result of recent market conditions and reflects STOXX Limited’s commitment to the constant development of its index family.

 

The new fast exit rule ensures that the Dow Jones EURO STOXX 50, Dow Jones STOXX 50 and Dow Jones STOXX Nordic 30 indexes accurately represent the performance of only the biggest and most liquid stocks in the Euro zone, Europe and the Nordic region, respectively.

Source: ETFWorld.com – STOXX


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