FTSE Russell Index Policy for Trading Halts and Market Closures v1.0

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1 FTSE Russell Index Policy for Trading Halts and Market Closures v1.0 ftserussell.com December 2015

2 Purpose of the guide This document sets out guidance for the treatment of index changes in the event of trading halts or market closures. FTSE Russell defines a scheduled market closure as an announced market holiday and defines an unexpected market closure as one where a market is closed due to an unplanned event, for example, extreme weather or technical issues. FTSE Russell defines a corporate action as an action on shareholders with a prescribed ex date, e.g. rights issue, special dividend, stock split. The share price and indices in which the company is included will be subject to an adjustment on the ex date. This is a mandatory event. FTSE Russell defines a corporate event as a reaction to company news (event) that might impact the index depending on the index rules. For example, a company announces a strategic shareholder is offering to sell their shares (secondary share offer) this could result in a free float weighting change in the index. FTSE Russell will decide whether there is an index adjustment or not and the timing of the change. FTSE Russell FTSE Russell Index Policy for Trading Halts and Market Closures, v1.0, December of 5

3 1.0 Index Review Unscheduled Market Closure Market has an unexpected partial day closure on the last trading day before index review effective date FTSE Russell will review the impact on a case-by-case basis taking into account the duration of the outage, the time of day of the outage and whether the affected market publishes an official closing price. FTSE Russell will preannounce any change to the index review implementation schedule Market has an unexpected full day closure on the last trading day before index review effective date FTSE Russell will review the impact on a case-by-case basis and preannounce any change to the implementation schedule. Market has an unexpected outage during the last trading day before an index review effective date FTSE Russell will review the impact on a case-by-case basis taking into account the duration of the outage, the time of day of the outage and whether the affected market publishes an official closing price. FTSE Russell will preannounce any change to the index review implementation schedule. Scheduled Market Closure Market has a scheduled full day closure a trading period before and/or on the index review effective date index review changes will proceed as announced Market has a scheduled partial day closure a trading period before and/or on the index review effective date FTSE Russell will review the impact on a case-by-case; but generally the index review changes will proceed as announced. 2.0 Corporate Actions and Events Unscheduled Market Closure Market has an unexpected full day closure on the last trading day before effective date of a security level corporate event - FTSE Russell will postpone any corporate event changes for the security until the market reopens for regular trading and implement changes with two trading days notice Market has an unexpected full day closure on the effective date of a security level corporate action - FTSE Russell will review the impact on a case-by-case basis; but will generally postpone the implementation of the security level corporate action until the market reopens for regular trading. Market has an unexpected partial day closure on the last trading day before effective date of a security level corporate event FTSE Russell will review the impact on a case-by-case basis; but generally the implementation of the security level corporate event will proceed as announced. FTSE Russell FTSE Russell Index Policy for Trading Halts and Market Closures, v1.0, December of 5

4 3.0 Trading Halts Corporate Actions and Events Security is suspended a trading day before a corporate event effective date FTSE Russell will postpone the implementation of the corporate event until the security resumes trading and changes will be implemented with two trading days notice Security has a preannounced suspension on the prescribed effective date of a corporate action - FTSE Russell will postpone the implementation of the corporate action until the security resumes trading Security is unexpectedly suspended on the prescribed effective date of a corporate action FTSE Russell will ascertain whether the listing exchange has adjusted the price of the security in line with the corporate action. If the price is adjusted, then the corporate action will proceed as announced. If the price is unadjusted, then the event will be postponed until the security resumes trading. Index Reviews Security is suspended before an index review effective date FTSE Russell will review the impact on a case-by-case basis, but will generally postpone any scheduled index review additions, deletions, investability weight and shares in issue changes for the suspended security until the security resumes trading and changes will be implemented with two trading days notice. FTSE Russell FTSE Russell Index Policy for Trading Halts and Market Closures, v1.0, December of 5

5 Further information For further information on FTSE Russell Indexes please visit or or Contact details can also be found on these websites. The FTSE Russell Committee Secretary can be contacted via at 2015 London Stock Exchange Group companies. All rights reserved. London Stock Exchange Group companies includes FTSE International Limited ( FTSE ), Frank Russell Company ( Russell ), MTS Next Limited ( MTS ), and FTSE TMX Global Debt Capital Markets Inc. ( FTSE TMX ). All rights reserved. FTSE, Russell, MTS, FTSE TMX and FTSE Russell and other service marks and trademarks related to the FTSE or Russell indexes are trade marks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put. The London Stock Exchange Group companies do not provide investment advice and nothing in this document should be taken as constituting financial or investment advice. The London Stock Exchange Group companies make no representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the London Stock Exchange Group companies. Distribution of the London Stock Exchange Group companies index values and the use of their indexes to create financial products require a licence with FTSE, FTSE TMX, MTS and/or Russell and/or its licensors. The Industry Classification Benchmark ( ICB ) is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB. FTSE Russell FTSE Russell Index Policy for Trading Halts and Market Closures, v1.0, December of 5