REMINDER: Updates to Nasdaq Index Methodologies

REMINDER: Updates to the Index Methodologies that govern the calculation and management of local and regional equity indexes in the VINX, Nordic & Baltic area


Effective December 8, 2014, Nasdaq will start to calculate VINX, Nordic and Baltic equity indexes and other related indexes via its state-of-the-art Global Index Calculator powered by NASDAQ OMX INET® technology — the world's fastest trading system technology.

In connection to the technical migration, updates are also made to the Index Methodologies that govern the calculation and management of the indexes that are being migrated.

In summary, the general methodology changes are:

  • New divisor based index formula for Price Indexes.
  • New divisor based index formula for Gross Total Return Indexes.
  • New divisor based index formula for Net Total Return Indexes.
  • Indexes that are calculated in intraday and use foreign exchange rate conversions due to the composition of the index will use real-time updated foreign exchange rates intraday.
  • All End of Day index calculations will continue to use WM/Reuters Closing Spot Rates (4 p.m. UK fix) in the calculation, including those that use real-time rates intraday.
  • Format updates to the documents, including an appendix detailing the indexes governed by each methodology.

Note that the change in index formula does not affect the results of the index value calculation. In addition, no changes are being made to the index construction or the selection rules.

In addition, there are changes outside the methodologies that should be noted:

  • Precision in index calculation is increased and the floating point calculation based on 15 significant digits is retired.
  • For calculations where an uneven number of shares are generated as a result of a corporate action, free float adjustment, weight limitation or suchlike; the new calculator uses rounding to the nearest full number. The current method is truncation with 0 decimal digits, i.e. always rounding towards zero and presenting a full number.

The updates are implemented on December 08, 2014 and all new methodologies can be found on our index service: Global Index Watch: https://indexes.nasdaqomx.com/

For further information concerning this exchange notice please contact Nasdaq Global Index Group, telephone + 46 8 405 6296 or e-mail indexsupport@nasdaq.com

 


Attachments

2014-10-21_VINX_Index_Rule_Updates.pdf