Sharemarket operator NZX Ltd is making some changes to the way it releases information about its indices after a controversy involving membership of its NZX-50 index.Allied Farmers' share price rose then fell when subscribers to an NZX subscriber-only inf
Sharemarket operator NZX Ltd is making some changes to the way it releases information about its indices after a controversy involving membership of its NZX-50 index.
Allied Farmers' share price rose then fell when subscribers to an NZX subscriber-only information service were told the company would be in the NZX-50 then advised that it would not be. NZX was criticised for not releasing the information to all investors at the same time.
NZX on Friday announced initial changes from a review of the processes relating to the preparation and release of changes in the index constituents and weighting of such constituents, on a monthly and a quarterly basis.
NZX will no longer prepare, or release, any preliminary index memos. The only index memo released will be the final index memo.
For quarterly index memos there will be seven trading days prior to any actual change in the index occurring, and for monthly index memos there will be five trading days prior to any actual change in the index occurring.
NZX is continuing to conduct a review of index methodology. The methodology review will be conducted over the next 30 business days, and a consultation draft on any proposed changes released for feedback at that time.
