The german stock exchange wants the leading german index dax to contain 40 instead of 30 stocks in the future. A corresponding survey among market participants on the reform of the index was launched on monday, the stock exchange operator announced in frankfurt. In addition, in the future, companies should be demonstrably profitable in order to be admitted to the dax index. The consultation of the members will last until 4 april. November. The result is expected on 23. November will be presented.
With these changes, the german stock exchange is responding to recent criticism of the existing dax regulations. The background to this is the expulsion of the now insolvent payment service provider wirecard, less than two years after it was included in the list.
Wirecard was replaced in the dax by the loss-making company delivery hero. The german stock exchange had therefore announced its intention to change the rules before the end of this year.
A consolidation of the dax would at the same time reduce the size of the mdax. The proposal is that in the future the index should include only 50 companies instead of the current 60. 70 shares are to continue to be listed on the sdax. Here it had recently because of the haufigen change criticism given.
Should the changes come about, the sector weighting in the leading index will partly shift. The chemical sector in particular was able to make gains, as a presentation on the reform proposal shows. Companies in the media and pharmaceutical industries will also make the leap to the dax. In contrast, the importance of car companies and consumer goods producers for the index calculation was reduced. The reform is expected to "expand the quality criteria" as well as an "alignment of these criteria with international index standards", said it in a press release on monday. This means, for example, that the stock exchange turnover criterion is to be dropped from the dax, as is the case internationally. "High capital market relevance and objectivity are to be maintained while transparency and predictability are to be further strengthened at the same time." In terms of quality standards, it is planned that all members of the dax will have to prove that they have an audit committee in the supervisory board.
Companies that generate more than ten percent of their sales with "controversial weapons" should be excluded from the dax the entry should be denied. In order to bring the dax further into line with international index standards, the composition of the index will henceforth be reviewed every six months instead of once a year. It is hoped that this will enable changes to be implemented more quickly. In addition, it will be sufficient in the future for companies to be listed in the regulated market and not in the premium segment prime standard.
As early as 2018, the head of the deutsche borse, theodor weimer, had spoken out in favor of expanding the dax. "From the rough order of the german economy, it would be quite justified to think about a broader structure for the dax", said weimer at the 30. Anniversary of the dax in july 2018. He said at the time that he thought it was conceivable that the dax would also include more than 30 stocks. Dpa