Extensive update on index rule set from Borsa Istanbul

Investing.com - Borsa Istanbul, BIST announced a comprehensive update to the Market Capitalization Weighted Share Indices Rule Set. With the change in the rule set, it was decided to exclude the shares traded on the Pre-Market Trading Platform (PÖİP) from the BIST All and BIST 500 indices.

With this change, shares in PÖIP will no longer be included in the index. The regulation in question was prepared as part of rule changes aimed at reducing company changes within the scope of the index.

BIST 500 shares to be selected based on market structure

With the regulation, the selection of shares to be included in the BIST 500 index will be determined in accordance with the market structure of the Borsa Istanbul Stock Market. Accordingly, the ranking will be made according to the structure of Star Market, Main Market and Submarket.

This new application will enable the index composition to be shaped in accordance with the market segment. Thus, a more systematic method will be based on the selection of shares covered by the index.

Data duration increases from 6 months to 12 months

The “daily average trading volume” and “adjusted price” data used in the periodic valuation of the BIST 30, BIST 50, BIST 100, BIST 500, BIST Liquid Bank, BIST Non-Bank Liquidity 10, BIST Sustainability 25, BIST Dividend 25, BIST Participation 300, BIST Participation 50 and BIST Participation 100 indices are now 12-month data will cover the period.

Thanks to this regulation, the data sets used will be aligned with the periodic assessments of the distribution of shares across markets. Thus, more long-term data will be taken into account in index calculations.

Updated sorting ranges

The ranking ranges used in the periodic assessments for the BIST 100 and BIST Attendance 100 indices have also been updated. The lower and upper ranks, which were previously 95-105, were rearranged to 90-110.

With this update, the limit of change of index components will be kept wider. Thus, it is aimed to reduce the number of entries and exits to the indices.

Title and description sections have been renewed

The section of the rule set titled “1st Introduction and Purpose” was renamed simply “Introduction”. No changes have been made to the contents of the subheadings in this section.

In addition, a statement was added to the section titled “Management” and it was made clear that Borsa Istanbul owns the intellectual property rights of all indices covered by this set of rules.

Updated section on BIST buyback index

The regulation of the scope of the BIST buyback index was also reflected in the rule set. Due to the repeal of the relevant Principle Resolution of the Capital Market Board, the section entitled “3.29 BIST Buyback Index” has been revised.

With this regulation, consistency was ensured between the current set of rules and the current legislation. The updated content and references to the scope of the index have also been adapted to this.

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