| Field | Value | Source text | Reading (model) |
|---|---|---|---|
| G1 Scope, precedence and principles · 6 fields | |||
| Review cycle for guide | At least annually | This document will be subject to regular review (at least once a year) by FTSE Russell.Open p.3 ↗ |
FTSE Russell reviews the guide regularly, at least once a year. |
| Covered indices | Index series whose methodology specifically references this guide. | This document applies to any index series where the guide is specifically referenced in the index methodology documentOpen p.1 ↗ |
The guide applies only to index series that specifically reference it in their index methodology. |
| Precedence rule | Read with the applicable ground rules or index methodology; the guide provides guidance and is not definitive in every circumstance. | these guidelines should not be construed as definitive rules that will determine FTSE Russell’s actions in all circumstances. FTSE Russell reserves the right to determine the most appropriate methodOpen p.3 ↗ |
The guide must be read with the ground rules or methodology of the applicable index series, and FTSE Russell may determine implementation for uncovered or complex events. |
| Principles | Representativeness, accurate market representation, balance with passive-manager tracking and replicability, maximisation of available investment opportunity | FTSE Russell applies corporate actions and events to its indices on a daily basis, both to reflect the evolution of securities and to ensure that the indices remain highly representative of the global equity markets.Open p.4 ↗ |
FTSE Russell applies events daily to keep indices representative of global equity markets while balancing accurate market representation with passive-manager tracking. |
| Administrator | FTSE Russell | FTSE Russell reserves the right to determine the most appropriate method of implementation for any corporate event which is not covered hereOpen p.3 ↗ |
The guide is issued by FTSE Russell. |
| Rulebook version | v7.1 | The document version is v7.1. | |
| G4 Corporate events · 16 fields | |||
| Actionable event notice | Minimum notice: 2 days; Events: stock mergers, cash mergers, tender offers, Delisting, Bankruptcy, equity offers, exchange offers | Actionable corporate events include stock and cash mergers, Tender offers, delisting, bankruptcy, equity and exchange offers. These action types will be provided with a minimum two-day notice.Open p.5 ↗ |
Actionable corporate events receive a minimum two-day notice, subject to the stated Russell Small Cap Completeness exception. |
| Dummy lines | Temporary non-tradable instruments may be created ad hoc to reflect complex corporate events and support investor experience or replication. | Dummy lines are non-tradable instruments which have been temporarily created by FTSE Russell in order to reflect a corporate event.Open p.6 ↗ |
FTSE Russell may create temporary non-tradable dummy lines for complex corporate events and will provide notification when they are used. |
| Compulsory buyback | A compulsory full buyback deletes the security at the last traded price, or at the redemption price if trading is halted. | A compulsory tender/buy back of all outstanding shares at a set price. The security is deleted from the index at the last traded price.Open p.11 ↗ |
Compulsory full share buybacks result in deletion at the last traded price or redemption price if trading is halted. |
| Tokenised shares | Listed tokenised shares are ineligible, and conversions or issuance affecting an eligible share class are reviewed at the next quarterly review. | Tokenised shares are deemed ineligible. Where a company conducts a corporate event involving the conversion or the issuance of listed tokenised sharesOpen p.24 ↗ |
Listed tokenised shares are excluded, with impacts on the underlying eligible share class assessed at the next quarterly review. |
| Cash dividend | Ordinary: Reinvested in total return indices on the ex date; no capital index divisor adjustment; Special: Price is reduced by the dividend before the open on the ex date; special dividends are excluded from total return index calculations; Recurring special rule: The fourth recurring special cash distribution is considered ordinary after more than three consecutive non-extraordinary occurrences | Regular cash dividends are those paid to shareholders out of a company’s profits or reserves. These cash dividends impact the total return and are reinvested across the index on the dividend ex date.Open p.8 ↗ |
Ordinary cash dividends are reinvested in total return indices on the ex date, while special cash dividends reduce price before the open and are excluded from total return calculations. |
| Bonus and split | Shares and prices are adjusted according to the terms on the ex date, with no market capitalisation or divisor change; scrip and bonus issues follow the same pro-rata treatment. | A pro-rata distribution of shares (split) or a pro-rata consolidation (reverse split) of shares held by existing shareholders. No company market capitalisation change.Open p.7 ↗ |
Splits, reverse splits, bonus issues and same-stock scrip issues adjust shares and prices on the ex date without changing market capitalisation or the divisor. |
| Rights issue | If the subscription price is at a discount to the cum-date market price, shares and price are adjusted according to offer terms on the ex date with a divisor adjustment; highly dilutive offers use temporary rights and cash lines. | FTSE Russell will only adjust the index to account for a right if the subscription price of the rights is at a discount to the market price of the stock at the close of cum date.Open p.11 ↗ (not found verbatim in the PDF) |
A discounted rights or entitlement offer increases shares and adjusts price on the ex date, with special temporary-line treatment for offers greater than 10 for 1. |
| Other share changes | Primary and secondary offerings may be updated intra-quarter when thresholds are met; private placements to restricted parties, warrant exercises and lock-up expiries are deferred to the next quarterly review. | Share and free float changes resulting from activity such as private placements to restricted parties, exercise of warrants and expiry of lock-ups, will be deferred to the next quarterly review.Open p.27 ↗ (not found verbatim in the PDF) |
Share changes from offerings are implemented intra-quarter only where specified thresholds apply, while placements, warrant exercises and lock-up expiries wait for the quarterly review. |
| Capital reduction | Capital repayments generally receive a price adjustment and divisor adjustment; ordinary dividends reported as capital repayments may follow company reporting policy. | Capital repayments are paid to shareholders as a return of capital and are generally applied with a price adjustment unless company policy is such that regular dividends are reported in this wayOpen p.8 ↗ |
Capital repayments are generally applied with a price adjustment and divisor adjustment, except where regular dividends are reported as capital repayments under company policy. |
| Merger acquisition | Final mergers, acquisitions and tender offers can change membership and acquirer shares; cash targets are deleted at the last traded price or cash terms, while stock mergers increase acquirer shares under the offer terms. | Mergers and acquisitions (M&A) activity may result in changes to index membership as well as to the shares included within the index.Open p.16 ↗ |
Mergers and acquisitions are applied once final with appropriate notice, deleting targets and, for stock consideration, increasing the acquirer’s shares according to the transaction terms. |
| Spin off | Eligible spun-off entities are temporarily added to the parent’s indices on the ex date and reviewed at the next quarterly review or reconstitution; ineligible entities are added temporarily and removed after listing and settlement. | The spin-off entity will be added to the same indices as the parent company, per the terms, on the ex date of the distribution.Open p.21 ↗ |
Spin-offs are added to the parent’s indices on the ex date, with eligible entities retained until the next review and ineligible entities removed after listing and settlement. |
| New listing | An eligible IPO may be added before the announced review where a corporate action makes this appropriate and notice can be provided; otherwise the distributed or split-off portion is added at the event and remaining shares at the review. | An eligible IPO may be added to the index prior to the previously announced index review schedule, if a corporate action has deemed this to be appropriate and notice can be provided.Open p.4 ↗ |
An eligible IPO can be added early when it arises through a distribution or optional split-off and adequate notice can be provided. |
| Suspension | Suspended constituents remain at last traded price for up to 20 business days; after review and a 20-business-day notice period they may be removed at zero value, subject to the stated exceptions. | Unless the circumstances set out in Section 4.17 apply, the constituent will continue to be included in the index for a period of up to 20 business days at its last traded priceOpen p.24 ↗ |
A suspended constituent is initially carried at its last traded price, then reviewed and may be removed at zero value after the prescribed notice period. |
| Delisting | A constituent is deleted if delisted from all eligible exchanges, or if it has filed for delisting with no regulatory or shareholder approvals outstanding; confirmed delisting also triggers target-company deletion. | A constituent will be deleted if it is delisted from all eligible exchanges*. A constituent will be deleted if FTSE Russell becomes awareOpen p.23 ↗ |
Delisting from all eligible exchanges, or a delisting filing with no required approvals outstanding, causes constituent deletion with notice. |
| Bankruptcy | A constituent is deleted on bankruptcy, bankruptcy protection, administration, receivership, insolvency, liquidation or local equivalents, with notice. | has become bankrupt, has filed for bankruptcy protection, enters into administration or receivership, commenced accelerated safeguarding procedures, is insolvent or is liquidatedOpen p.23 ↗ |
Bankruptcy, insolvency, administration, receivership, liquidation or equivalent proceedings trigger deletion. |
| Transfer of listing | If an eligible listing remains after delisting from the represented exchange, nationality is reassessed and the company may transfer to the appropriate country index. | Where an existing constituent delists from the eligible exchange represented within the index but retains one or more additional eligible listings, then the company nationality will be immediately reassessedOpen p.24 ↗ |
A constituent retaining an eligible listing after removal from the represented exchange is reassessed by nationality and may be transferred between country indices. |
| G5 Shares, free float and weight factors · 8 fields | |||
| Quarterly information cutoffs | March: Last business day of January; June: Last business day of April; September: Last business day of July; December: Last business day of October | The March, June, September and December review updates will be triggered by vendor changes and confirmed appropriately with the cut-off for new information occurringOpen p.25 ↗ |
The March, June, September and December updates use information cut-offs on the last business day of January, April, July and October. |
| Lockup expiry timing | Lock-up expiries are implemented at the next quarterly review if expiry occurs on or before the information cut-off. | Free float changes resulting from the expiry of a lock-up will be implemented at the next quarterly review subject to the lock-up expiry date occurring on or priorOpen p.25 ↗ |
Free-float changes from lock-up expiries are applied at the next quarterly review when the expiry date is on or before the cut-off. |
| Greenshoe treatment | Potential greenshoe shares are excluded initially; exercise is reflected in free float at the next quarterly review. | Greenshoes (over allotment option) – those shares potentially to be offered as a greenshoe will not be included in the initial calculationOpen p.25 ↗ |
Greenshoe shares are not included initially, and any free-float change from exercise is applied at the next quarterly review. |
| Share count basis | Shares in issue are shares outstanding excluding treasury shares and unissued shares; index shares equal shares in issue multiplied by free float. | Shares in issue is defined as the number of shares outstanding excluding shares held in treasury and unissued sharesOpen p.25 ↗ |
FTSE Russell uses outstanding shares excluding treasury and unissued shares, and defines index shares as shares in issue multiplied by free float. |
| Free float sources | company filings, company press releases, regulatory filings, local exchange notifications, official updates from data providers | The June updates will be implemented using data sourced primarily from company filings for all constituents and free floats will be rounded to 12 decimal places.Open p.25 ↗ |
FTSE Russell uses company filings and other public sources, including press releases, regulatory filings, exchange notices and official data-provider updates. |
| Share change threshold | Quarterly share change: 1; Free float bands: From: 0; To: 5; Change threshold percentage points: 0.25, From: 5; To: 15; Change threshold percentage points: 1, From: 15; To: 100; Change threshold percentage points: 3; Intra quarter primary secondary: Investable market cap change USD: 1,000,000,000, Index share change percent: 5; Investable market cap change USD: 250,000,000 | Cumulative share changes greater than 1%; For constituents* with a free float of 5% and less, cumulative free float changes greater than 0.25 of a percentage pointOpen p.25 ↗ (not found verbatim in the PDF) |
Quarterly share and free-float updates use cumulative thresholds, while primary or secondary offerings can trigger intra-quarter updates under USD 1 billion or 5% plus USD 250 million tests. |
| Free float update timing | Ftse: Quarterly updates in March, June, September and December; June updates apply regardless of size; Russell: Semi-annual reconstitution; Intra quarter: Primary and secondary offerings are updated outside the cycle when thresholds are met | the FTSE Russell indices will be reviewed quarterly for updates to shares outstanding and to free floats used within the index calculation.Open p.25 ↗ |
FTSE indices review shares and free float quarterly, Russell changes apply at the semi-annual reconstitution, and qualifying offerings may be updated intra-quarter. |
| Foreign ownership limit | Share and free-float triggers are assessed from an international investor stance; where a constituent appears in global and domestic indices, the update applies only if thresholds are breached at the global level, which may occur because of a foreign ownership restriction. | The share and free float change triggers are calculated from an international investor stance. In the event that an index constituent is represented both in a global and domestic indexOpen p.27 ↗ |
Foreign ownership restrictions can affect the global-index share measure used to determine whether share and free-float update thresholds are breached. |
| G7 Review and constituent changes · 10 fields | |||
| Target deletion free float thresholds | Bidder holding threshold percent: 90; Remaining free float threshold percent: 5; UK unconditional offer threshold percent: 75 | The bidder’s shareholding has reached at least 90% (initial, extension or subsequent) and Shareholders have validly tenderedOpen p.18 ↗ |
Tender targets are normally deleted after at least 90% bidder holding and acceptance, remaining free float under 5%, compulsory acquisition intent, or confirmed delisting; UK constituents use a 75% threshold. |
| Minimum permissible price deletion | A constituent whose price reaches the minimum permissible trade price is removed at the next review if still at that price at the quarterly review lockdown. | A constituent will be deleted if FTSE Russell becomes aware that the price of the constituent has reached its minimum permissible trade price.Open p.24 ↗ |
Securities at their minimum permissible trade price are removed with the next index review if the condition persists at the review lockdown. |
| Review frequency | Quarterly | the FTSE Russell indices will be reviewed quarterly for updates to shares outstanding and to free floats used within the index calculation.Open p.25 ↗ |
FTSE share and free-float reviews occur quarterly, while Russell changes are implemented through the semi-annual reconstitution. |
| Data cutoff rule | New information for March, June, September and December updates cuts off on the last business day of January, April, July and October, respectively. | with the cut-off for new information occurring on the last business day of January, April, July and October, respectively.Open p.25 ↗ |
Quarterly updates use the last business day of the month preceding each quarterly information cut-off schedule. |
| Announcement rule | Event impacts and effective dates are communicated through daily corporate actions and events deliverables; actionable events receive minimum two-day notice. | The impact of the event and the effective date will be communicated to clients on a regular schedule, via the daily corporate actions and events deliverables.Open p.4 ↗ |
FTSE Russell communicates corporate-event treatment and effective dates through daily deliverables and gives at least two-day notice for actionable events. |
| Buffer rule | June share and free-float updates apply regardless of size, meaning buffers are not applied; other quarterly updates use the stated cumulative change thresholds. | In June the shares and free float updates will be implemented regardless of size (i.e. buffers will not be applied).Open p.25 ↗ |
The June update does not apply buffers, while March, September and December updates are governed by the quarterly change thresholds. |
| Fast entry rule | Timing: Before the previously announced review where a corporate action makes inclusion appropriate and notice can be provided | An eligible IPO may be added to the index prior to the previously announced index review schedule, if a corporate action has deemed this to be appropriate and notice can be provided.Open p.4 ↗ |
An eligible IPO arising from a corporate action may be added early if appropriate notice can be provided; no size threshold or excluded board is stated. |
| Ad hoc deletion triggers | Delisting, Prolonged suspension, Acquisition, Bankruptcy, Free float drop, Other | The target company will normally be removed from the index with a minimum T+ 2 notice when either:Open p.18 ↗ |
Ad hoc deletion can follow confirmed delisting, prolonged suspension, acquisition or tender-offer conditions, bankruptcy or insolvency, free-float reduction, and minimum permissible price or other ineligibility events. |
| Deletion price | Deleted stocks are removed at the last traded price when an active market exists; halted cash or compulsory-transaction targets are removed at cash or offer terms, and certain non-trading deletion cases use 0.0001. | Deleted stocks will be removed at the last traded price if an active market exists and the shares outstanding of the acquiring company will be adjusted simultaneouslyOpen p.5 ↗ |
The default deletion price is the last traded price, with offer terms for halted M&A targets and a nominal 0.0001 price in specified non-trading deletions. |
| Suspended constituent rule | Suspended constituents are carried at last traded price for up to 20 business days, then may be placed under a 20-business-day deletion notice and removed at zero value if still suspended. | the constituent will continue to be included in the index for a period of up to 20 business days at its last traded priceOpen p.24 ↗ |
A suspended constituent is retained temporarily at its last traded price and may be removed after the suspension and notice process. |
Open points · 11Model-written, for reference
- 1No effective date for v7.1 is stated.
- 2No standalone definition or detailed restricted-share schedule for free float is provided; the sections refer externally to Free Float Restrictions.
- 3No free-float banding factors are stated.
- 4No general weight-capping procedure is stated.
- 5No reserve list, replacement policy, turnover limit or general periodic constituent-review effective date is stated in this corporate actions guide.
- 6No treatment of a generic risk-warning or ST-style trading designation is stated.
- 7The broad universe eligibility rules and periodic constituent-review mechanics are not fully stated.
- 8Not coveredG2 Calculation and publication: not covered by this edition
- 9Not coveredG3 Prices and market data: not covered by this edition
- 10Not coveredG6 Disruption, emergencies and corrections: not covered by this edition
- 11Not coveredG8 Governance, changes and termination: not covered by this edition
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