Deutsche Boerse is pitching to include 40 firms from 30 representing the German blue-chip’s DAX now, according to Reuters. Proposed reforms call for tougher membership criteria in the wake of Wirecard accounting scandal. Firms to be banned for failure to submit timely quarterly figures.
- Proposed rules to require proven profitability requirement for joining Dax
- Number of constituents in the mid-cap index to reduce to 50 from 60
- Firms with sales of controversial weapons making up more than 10% of revenue to be excluded from DAX selection indices
- Changes of rules to allow for quicker expulsion of companies in the wake of Wirecard’s departure.
- Investors allowed up to Nov. 4 to respond to proposal
- Deutsche Boerse to publish results of consultation and decision on changes to index by Nov. 23.
- Since founding in 1988, DAX has been Germany’s answer to Dow Jones Industrial Average in New York and London’s FTSE, but most founding members have since dropped out.
DAX and Euro trading higher on proposed rule changes. DAX is up 0.73%, EURUSD is up 0.33%
