AEX-Index selection to be based on free float market capitalisation

NYSE Euronext has announced that the selection basis of the AEX-Index family will change from turnover to free float adjusted market capitalization ranking.

In a statement the exchange said that the “decision was made to improve stability in the selection process and to maintain a good reflection of the listings on the Amsterdam stock exchange”.

Several additional selection criteria will be introduced, aiming to improve tradability and market efficiency of the index, which will “also strengthen the objective selection process”. These changes, which resulted from a recent client consultation, will be implemented with the next annual index rebalance in March 2014 and will apply to the AEX, the AMX and the AScX.

The change in selection basis is not expected to lead to a completely different outcome of the selection process.

One of the likely benefits of this measure is, the exchange argues, “a more stable index composition. Moreover this change aims to have a more timely adaptation of the composition as the information basis will be taken at one specific point in time (shortly before the review) instead of being based on a turnover figure build up over the period of a year”.

The exchange argues that the changes will bring the index family more in line with international standards.

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