Corporate Actions and Events Guide for Market Capitalisation Weighted Indices

This document is a guide that outlines the treatment of corporate actions and events for market capitalisation weighted indices. It is intended for users who are familiar with index calculation and share price adjustments. The guide defines corporate actions, such as rights issues and stock splits, and corporate events, which may impact index membership and weight. It details the timing of these actions, emphasizing the importance of accurate market representation. FTSE Russell applies corporate actions daily, using various public sources to confirm event finality. The document specifies that a minimum two-day notice is required for actionable corporate events and describes the use of dummy lines to reflect corporate events. Additionally, it mentions that FTSE Russell reserves the right to determine the appropriate treatment for complex events not covered in the guide. Regular reviews of the document are conducted to ensure its relevance and accuracy.