STOXX Ltd. will adjust the capping in the DAX index family from 10 to 15%.
This was preceded by a broad market consultation which lasted from 11 October to 8 November 2023. The responses reflected a wide range of considerations from different stakeholders. A majority of participants were in favour of raising the capping limit to 15%.
With this capping limit, STOXX is aligning the DAX index family with international standards. The capping limit defines how high the maximum weight of an individual company may be in the index. If the weighting rises above this value, the weighting is adjusted accordingly every three months as part of the index review.
A capping at 10% resulted in 38 incidents in the DAX index in the course of the past ten years. Not a single company would have been capped if the limit had been 15% instead.
The capping limit of 15% will become applicable for the first time with the index review in March, which will become effective on 18 March 2024. The DAX rulebook will then be adjusted accordingly.
STOXX and DAX indices comprise a global and comprehensive family of more than 16,500 strictly rules-based and transparent indices. STOXX and DAX indices are licensed to more than 550 companies around the world for benchmarking purposes and as underlyings for ETFs, futures and options, structured products, and passively managed investment funds.
STOXX Ltd., part of Deutsche Boerse Group, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation.