Consultation BEL 20 Index Methodology

Background

Euronext would like to consult on proposed changes to the BEL 20 Index rulebook methodology.

To qualify for selection, an eligible company's free float market capitalisation must exceed the thresholds set out in the rulebook. Currently, the thresholds for the BEL 20 are 300,000 and 200,000 multiplied by the BEL-level on the cut-off date for new and existing constituents respectively.

Recent developments indicate that the rising BEL 20 level is resulting in fewer companies qualifying for inclusion, with the risk that the number may fall below 20.

This consultation proposes to address the issue by lowering both thresholds, thereby enabling a larger number of companies to qualify for entry into the index.

Current and proposed rules:

Current rule:

Annual Review of the BEL 20: 

In order to qualify for selection the free float market capitalisation of an eligible Company must be higher than BEL 20 index level at Review Cut-Off Date multiplied by 300 000. Existing Index members should at least have a free float adapted market capitalisation equal to BEL 20 index level at Review Cut-Off Date multiplied by 200 000 in order to stay in the index at the annual review.

BEL 20 quarterly reviews (in June, September and December): 

The following changes will occur in the BEL 20 at the occasion of quarterly reviews:

1. Eligible Non-Constituents whose free float adjusted market capitalisation rank among the top 10 at the Review Cut-Off Date will enter the BEL 20.
2. Constituents whose free float adjusted market capitalisation rank lower than 30 will be removed from the index.
3. If there are fewer than 20 members the highest ranking eligible companies will be added to the index if their free float market capitalisation is higher than BEL 20 index level at Review Cut-Off Date multiplied by 300 000.
4. If there are more than 20 members (due to spin off/fast entry), the lowest ranking constituent(s) will be removed.

Proposed rule (changed parts underlined): 

Annual Review of the BEL 20: 

In order to qualify for selection the free float market capitalisation of an eligible Company must be higher than BEL 20 index level at Review Cut-Off Date multiplied by 200 000. Existing Index members should at least have a free float adapted market capitalisation equal to BEL 20 index level at Review Cut-Off Date multiplied by 150 000 in order to stay in the index at the annual review.

BEL 20 quarterly reviews (in June, September and December): 

The following changes will occur in the BEL 20 at the occasion of quarterly reviews:

1. Eligible Non-Constituents whose free float adjusted market capitalisation rank among the top 10 at the Review Cut-Off Date will enter the BEL 20.
2. Constituents whose free float adjusted market capitalisation rank lower than 30 will be removed from the index.
3. If there are fewer than 20 members the highest ranking eligible companies will be added to the index if their free float market capitalisation is higher than BEL 20 index level at Review Cut-Off Date multiplied by 200 000.
4. If there are more than 20 members (due to spin off/fast entry), the lowest ranking constituent(s) will be removed.

Timeline of changes

Stakeholders will have until the 7^th of April 2026 to react to the consultation. The new rules, if validated by Index Design, will be implemented before the September 2026 Review.