Deutsche Boerse: DAX index to rise to 40 members next year

(CercleFinance.com) - Germany's benchmark stock index, the DAX, will be expanded by ten members to a total of 40 constituents from September 2021, index operator Qontigo said on Tuesday.


The changes in the index rules are intended to increase the quality of the DAX index, and to align them with international standards, said Qontigo, which is owned by Deutshe Börse.

From December 2020, all future DAX members must have reported positive EBITDA in their two most recent annual financial statements.

Drawing lessons from the Wirecard scandal, Qontigo said that, from March 2021, all companies in the DAX index will be obliged to publish audited annual financial reports and quarterly statements, Qontigo added.

Starting next year, the DAX will be reviewed twice yearly - in March and September - while it is currently reviewed just once annually, in September.

The moves are based on the results of a market consultation that ended on 4 November, during which Qontigo received feedback from over 600 participants, including financial institutions and private investors.

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