ETFWorld.co.uk

Client information on the treatment of Greece in the STOXX Indices

Contrary to the initial announcement of a restart of trading at the Athens Stock Exchange the closure has been prolonged until Jul. 13, 2015 (included). Given this new situation, STOXX Limited has conducted the initial assessment for a potential removal of the stocks based on the new information and the prolonged market closure….. 


Sign up for our weekly Newsletter and receive the latest ETF and ETC news. Click here to register for your free copy


STOXX assumes that trading is officially scheduled to resume within the next 20 days

STOXX will not remove the Greek stocks following the 10 non-trading day rule

If the Athens Stock Exchange remains closed for 30 consecutive days, the removal of the stocks within two trading days will be announced. The 30th day would fall on Aug. 7, 2015. The first day of the current market closure in Greece was Jun. 29, 2015.

STOXX will communicate next steps prior to Aug. 7, 2015

STOXX would like to clarify that the process is applied to the current market closures only and does not cover a potential exit from the Eurozone

In the scenario a country would exit the Eurozone in an unscheduled disorderly way, and trading would be switched to a newly introduced non-Euro currency STOXX would then evaluate the specific market situation and announce the treatment of these companies as soon as possible following the announcement. Independent of the results of such an evaluation, STOXX would delete those companies from the EURO STOXX Indices as soon as feasible. However, deletions would be done in such a way as to minimize tracking error distortions, as measured by theoretical long portfolio tracking the index exactly.

Source: ETFWorld.co.uk

Related Articles

Planet Tracker : Large index providers should prepare for disruption

Editorial Staff

Solactive : Investing in Tech Giants with Evolve ETFs’ FANGMA ETF

Editorial Staff

S&P Dow Jones Indices : Federal Government of Germany Create EU Climate Transition Index

Editorial Staff