| Field | Value | Source text | Reading (model) |
|---|---|---|---|
| G1 Scope, precedence and principles · 4 fields | |||
| Covered indices | Any index series specifically referenced in the Ground Rules. | This document applies to any index series where specifically referenced in the Ground Rules.Open p.1 ↗ |
The document applies to any index series specifically referenced in the Ground Rules. |
| Administrator | FTSE Russell | Securities within the FTSE Russell equity indices are adjusted to include only those shares available to the public.Open p.2 ↗ |
FTSE Russell is the index provider issuing and applying these rules. |
| Rulebook version | v3.5 | v3.5 (effective June 2025)Open p.1 ↗ |
The rulebook version is v3.5. |
| Effective date | 2025-06 | v3.5 (effective June 2025)Open p.1 ↗ |
The rules are effective June 2025; no specific day is stated. |
| G5 Shares, free float and weight factors · 14 fields | |||
| Portfolio holding restriction threshold | 30% | Where a single portfolio holding is 30% or greater, it will be 30 regarded as strategic and therefore restricted.Open p.3 ↗ |
A single portfolio holding of 30% or more is treated as strategic and restricted. |
| Sovereign wealth fund restriction threshold | 10% | Sovereign Wealth Funds Shares that are held by sovereign wealth funds. 10* Treasury Shares Shares that are held in treasury. 0Open p.3 ↗ |
Sovereign wealth fund holdings are restricted at 10% or greater, except where the stated low investability-weight rule requires restriction regardless of percentage. |
| Threshold release rule | Threshold-restricted shares remain restricted until the holding falls below the stated threshold. | Free float restrictions where a threshold is stated (E.g. 10% or greater or 30% or greater) o The shares will remain restricted until the holding falls below the stated 10% or 30% threshold.Open p.3 ↗ |
Shares restricted under the 10% or 30% thresholds remain restricted until the holding falls below the applicable threshold. |
| Nominee shares rule | Nominee holdings are generally free float, except portions held for an identified restricted shareholder. | Shares disclosed as being held by a nominee account are typically regarded as free float. However, if a restricted shareholder is identified as holding shares through a nominee account then that portion of shares will be restricted.Open p.3 ↗ |
Shares held in a nominee account are generally treated as free float, but any portion identified as belonging to a restricted shareholder is restricted. |
| Discretionary exclusion for unavailable portfolio or sovereign holdings | FTSE Russell may exclude portfolio or sovereign wealth fund holdings below the normal thresholds when public information indicates the holdings are unlikely to be freely available. | if FTSE Russell determines that the shareholder’s investment objectives indicate these holdings are not likely to be freely available in the market, FTSE Russell reserves the right to exclude them from free float.Open p.3 ↗ |
FTSE Russell may exclude portfolio or sovereign wealth fund holdings that are ordinarily free float if their investment objectives indicate they are unlikely to be freely available. |
| De spac lockup rule | US eligible companies that IPO via a de-SPAC transaction are considered only after expiry of the longest stated lock-up and are evaluated at the quarterly review following expiry within the data cut-off window. | US eligible companies that conduct their initial public offering via a de-SPAC transaction will only be considered for index inclusion following expiry of the longest stated lock-up.Open p.3 ↗ |
US de-SPAC IPO companies become eligible for consideration only after the longest stated lock-up expires and are evaluated at the applicable quarterly review. |
| High shareholding concentration rule | Companies with an unrescinded regulatory high-shareholding-concentration warning issued within two years before the free-float cut-off are ineligible for inclusion and existing constituents are deleted at the forthcoming review; later and older notices have case-by-case or evidence-based treatment. | Companies subject to a warning notice that has been issued within the two years prior to the free float cut-off date ahead of a forthcoming index review, and which has not subsequently been rescinded, are ineligible for index inclusionOpen p.3 ↗ |
Recent unrescinded high-shareholding-concentration warnings block additions and require deletion of existing constituents at the forthcoming review, while other cases are assessed based on timing, rescission and published free-float evidence. |
| China A share specific restrictions | For FTSE China A All Cap, FTSE China A50 and FTSE China 50, non-negotiable shares not converted after A-share reform and non-tradable A shares under lock-in are removed from free float. | The following rules also apply to the FTSE China A All Cap Index Series, FTSE China A50 Index, and FTSE China 50 IndexOpen p.3 ↗ |
Specified FTSE China indices exclude unconverted non-negotiable shares and non-tradable A shares subject to lock-in from free float. |
| Free float definition | Shares available to the public, calculated using publicly available information, rounded to four decimal places and reported as a percentage; constituent files may display more decimal places for investability weight calculations. | Securities within the FTSE Russell equity indices are adjusted to include only those shares available to the public. This is often referred to as “free float.”Open p.2 ↗ |
Free float includes only shares available to the public and is calculated from publicly available information, rounded to four decimal places and reported as a percentage. |
| Restricted shares | Shares held by corporations, public companies, non-listed subsidiaries, private companies, employee share plans or holding companies, Shares held by foundations and endowments, Shares directly owned by state, regional, municipal and local governments, excluding independently managed government pension schemes, Disclosed individual investor holdings, including officer and director holdings, Single portfolio holdings of 30% or greater, Shares held by sovereign wealth funds, generally restricted at 10% or greater, with an exception requiring restriction regardless of percentage for certain constituents with investability weight below 5%, Treasury shares, Shares held by private equity firms and venture capital funds, Shares subject to lock-up provisions, Shares with a stated incentive to retain them, Shares subject to ongoing contractual agreements such as swaps where they would ordinarily be restricted, Shares held through a nominee account where the underlying holder is restricted, Non-negotiable shares not converted after A-share reform for specified FTSE China indices, Non-tradable A shares subject to lock-in for specified FTSE China indices | The table below lists shareholder types that FTSE Russell restricts when calculating free float. Restriction %: Any holding greater than or equal to this number will be deemed restricted and therefore removed from free floatOpen p.3 ↗ (not found verbatim in the PDF) |
FTSE Russell excludes specified strategic, governmental, individual, treasury, private-capital, threshold portfolio and sovereign wealth holdings, plus locked, incentivised, contractually restricted and certain China A restricted shares. |
| Free float sources | Public filings, LSEG Data & Analytics Ownership and Profiles Data, US Securities and Exchange Commission filings, International declarable stakes notifications, UK share registers, Shareholder register data in the UK and New Zealand where available, Depository websites and share registers when standard public filings are unclear or insufficient | Where the free float of a company prospective constituent cannot be accurately determined due to unclear or insufficient information within the standard public filings, FTSE Russell may consider using publicly available data from other sources such as depository websites and share registersOpen p.2 ↗ |
Free float is based primarily on public filings and LSEG Ownership and Profiles data, with depository websites, share registers, SEC filings, declarable stakes and other public sources used as needed. |
| Free float factor | Method: Free float | Free float is calculated using publicly available information and is rounded to four decimal places and reported as a percentage. For example, a free float of 4.99999% is rounded to 5.0000%.Open p.2 ↗ |
The free float factor is the calculated percentage of shares available to the public, rounded to four decimal places, rather than a fixed band schedule in these sections. |
| Free float update timing | Lock-up expiry changes are implemented at the next quarterly review if the expiry occurs on or before the share and float change information cut-off date; further maintenance is governed by the Quarterly and Intra Quarter Free Float and Share Updates FAQ. | Changes resulting from the expiry of lock-ups will be implemented at the next quarterly review subject to the lock-in or incentive expiry date occurring on or prior to the share and float change information cut-off date.Open p.3 ↗ |
Changes from lock-up expiries are applied at the next quarterly review subject to the information cut-off, and further free-float maintenance follows FTSE Russell's quarterly and intra-quarter update FAQ. |
| Foreign ownership limit | Where shareholders are subject to legal restrictions, including foreign ownership restrictions, that are more restrictive than the listed restricted-holdings rules, the more restrictive legal restriction is applied. | If in addition to the restricted holdings defined below, the company’s shareholders are subject to legal restrictions, including foreign ownership restrictions, that are more restrictive, the legal restriction will be applied.Open p.2 ↗ |
Legal foreign ownership restrictions override the ordinary free-float restrictions when they are more restrictive. |
Open points · 12Model-written, for reference
- 1No explicit precedence rule explaining the relationship between these Ground Rules and an index-specific methodology was found.
- 2No numbered list of overarching index principles was found.
- 3The exact effective day in June 2025 is not stated; only June 2025 is provided.
- 4The basis and source for total shares in issue are not stated separately.
- 5No general threshold for implementing ordinary share or free-float changes between reviews is stated, apart from lock-up treatment and a reference to an external FAQ.
- 6No default weight-capping procedure is stated.
- 7Not coveredG2 Calculation and publication: not covered by this edition
- 8Not coveredG3 Prices and market data: not covered by this edition
- 9Not coveredG4 Corporate events: not covered by this edition
- 10Not coveredG6 Disruption, emergencies and corrections: not covered by this edition
- 11Not coveredG7 Review and constituent changes: not covered by this edition
- 12Not coveredG8 Governance, changes and termination: not covered by this edition
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