FTSE Russell has confirmed how the new UK Listing Rules (UKLRs) will impact eligibility for inclusion in the FTSE indices.
The new UKLRs, which involve a complete re-write of the rule book, will come into force on 29 July 2024 – and obligations in the current rules not carried across to the new UKLRs will fall away on that date.
Eligibility for FTSE indices
From 29 July 2024, companies in the new Equity Shares (Commercial Companies) (ESCC) or Closed Ended Investment Funds listing categories will be eligible for inclusion in the FTSE UK Index Series.
Current premium segment listed companies will be automatically mapped to the ESCC or Closed Ended Investment Fund categories (as applicable) by 29 July 2024. Standard segment listed companies will be mapped to the Equity Shares (Transition), Equity Shares (International Secondary Listing), or Equity Shares (Shell Companies) categories (as applicable). As a result, there will be no immediate impact on the index composition on day one of the new regime.
Companies in the Transition (or other) category that wish to transfer to the ESCC or Closed Ended Investment Fund categories will need to be admitted to the relevant category by 6 August 2024 if they want to be eligible for inclusion in the FTSE in the next quarterly review (because a 20-day trading record is required in order to be eligible for inclusion in the index).
Further information on the new UKLRs
You will find more detail on the new UKLRs in our three snapshots:
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UKLR – changes for listed companies: this is a one-page summary of the key changes for existing listed companies migrating from the premium segment to the new ESCC category;
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UKLR – new rules snapshot: this is a two-page summary of the new UKLRs for ESCC companies; and
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UKLR – the final rules are out: this is a detailed comparison of the CP23/31 proposals against the final UKLRs with details of the changes.
We also discuss the new listing regime in our "on the horizon" podcast which you can listen to here, and its impact on M&A in our podcast here.
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