ZUG, August 12, 2020 – Qontigo’s global index provider STOXX Ltd. has announced rule changes for the DAX family. STOXX decided to adopt the definition of Insolvency Event as proposed in the recent market consultation. According to the new rules, insolvent companies shall be removed from the DAX Selection Indices with two trading days’ notice. The rules will become effective on 19 August.
Changes to the composition of DAX Selection Indices will be communicated on 19 August 2020 after 22:00 CET and implemented on 21 August after market close. The affected indices will be calculated with the new composition as of 24 August 2020. Given the current situation, these rule changes would apply to Wirecard AG. The decision will be made on the basis of the ranking list of 31 July, as well as other requirements in the rulebook.
The new rule pertaining to insolvent companies was determined in a market consultation between 17 July and 7 August. Specifically, the amendment refers to the opening of insolvency proceedings as a procedure laid down by law and includes all relevant public notices in this respect. Since companies from other EU countries can also become index members, the rule does not only refer to German insolvency law. Further details are described in the current rulebook.
Irrespective of the current change in the rules for dealing with insolvent companies, an in-depth review of the DAX rules will be conducted. For this purpose, another extensive market consultation will be launched. The results will be announced by the end of the year.
The next scheduled DAX index review is on 3 September 2020.
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