AEX index family: eligibility companies trading below €1

With this consultation Euronext Indices seeks stakeholder feedback on a proposed change related to the eligibility of companies trading below €1,- or  €0,50 for current constituents.


Currently companies whose closing price are on average below €1 (€0,50 for current constituents) during the three months before the Review Cut-Off are not eligible for the AEX index family.  This rule for exclusion was introduced in 2013 in order to prevent (continued) inclusion of companies whose pricing level was seen as not representative for the market, due to the possibility of liquidity issues and price jumps for stocks trading at low prices.

It was observed however that companies with lower prices can have normal price fluctuations and liquidity patterns. It was therefore concluded that the current rule in place could screen out companies that would otherwise be a representative constituent for the Amsterdam market.

The proposed change entails removal of the requirement for inclusion to see recent trading above €1,- (or €0,50 for current constituents). Instead, the possibility to exclude companies on grounds of trading below the €1,- threshold will be included under the grounds for excluding companies for reasons of tradability.

Euronext intends to apply the proposed change as from the September 2019 review.

We welcome your feedback, both if you agree or disagree. Moreover, other suggestions are also much appreciated. Please fill in your background details and your vote. Entries will be treated confidentially.

Current rule
[Excluded are…] Companies whose closing prices are on average below €1,- during the three months before the Review Cut-Off Date. For current included companies in the AEX family the threshold is €0,50. The closing prices will be adjusted in case of (reverse) splits that are announced before the publication of the final selection.
Proposed rule

Remove the current rule and add instead of this:

Other companies or institutions as determined by Index Design. When excluding companies from the AEX index family, Index Design will take into account the tradability and the settlement of the shares issued by the company in question. When determining the tradability of a company’s shares, the frequency with which the shares are traded will be decisive. When settlement is assessed, the extent to which short positions can be taken and settled in a company’s shares will be decisive.Moreover, if closing prices are on average below €1,- during the three months before the Review Cut-Off Date , Index Design may propose to the Supervisor to exclude the company if this is seen as a factor restraining the tradability.

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