Bucharest Stock Exchange expands the maximum number of companies included in BET-XT BET-XT-TR and BET-BK indices from 25 to 30

9/8/2021

Bucharest Stock Exchange (BVB) announces that it will increase the maximum number of companies included in BET-XT, BET-XT-TR and BET-BK indices from 25 to 30, effective with the periodic adjustment of September 2021. This is the first time when BET-XT, BET-XT-TR and BET-BK indices are expanded. This extension operated by BVB has the role of offering through the indices BET-XT, BET-XT-TR and BET-BK variants of indices with a more pronounced differentiation from the main index BET, which currently includes a number of 17 companies with the possibility to reach a maximum number of 20 companies.

Another new feature is that there have been added new provisions which complement the current set of selection criteria for BET-XT, BET-XT-TR and BET-BK indices. The new provisions will become applicable starting with the periodic adjustment of March 2022 and are designed to ensure improved transparency and predictability for investors. They involve the introduction of the following articles in the index manuals:

 

  • Art. 2.2.5 in the BET-XT and BET-XT-TR indices management rules: “For a new company to be included in BET-XT(TR) index, it must be among the Top 25 companies based on the liquidity coefficient, to have an anticipated weight in the index of at least 0.3% and to replace an index constituent with lower liquidity and weight. For clarification purposes, where there are two index constituents that have lower liquidity and weight than the contender company, the primary criterion will be the liquidity. The provisions of article 2.2.5 will enter into force starting with the periodic meeting of March 2022.”

 

  • Art. 2.2.4 in the BET-BK index management rules: “For a new company to be included in BET-BK index, it must be among the Top 25 companies based on the product of Capitalization, Free float and Liquidity factor and to replace an index constituent with a lower index weight. If, at the review date, an index constituent has a Liquidity factor lower than 0.25, it can be replaced by the best positioned company from the perspective of the product of Capitalization, Free float and Liquidity factor that has a Liquidity factor of at least 0.25. The provisions of article 2.2.4 will enter into force starting with the periodic meeting of March 2022.”

 

For more information, please feel free to contact us at indices@bvb.ro.