STOXX Ltd. will adjust the limit on the DAX index family from 10 to 15%.
It was preceded by a broad market consultation, which ran from 11 October to 8 November 2023. The responses reflected a wide range of views from different stakeholders. The majority of participants were in favor of raising the cap to 15%.
With this cap, STOXX aligns the DAX index family with international standards. The cap determines how high an individual company’s maximum weight in the index can be. If the weighting increases above this value, the weighting is adjusted accordingly every three months as part of the index review.
A cap of 10% has resulted in 38 incidents in the DAX over the past ten years. No company would have been restricted if the limit was 15%.
The 15% cap will be implemented for the first time with the index revision in March, which will take effect on March 18, 2024. The DAX rulebook will then be adjusted accordingly.
The STOXX and DAX indices are a global and comprehensive family of more than 16,500 strictly rules-based and transparent indices. The STOXX and DAX indices are licensed to more than 550 companies worldwide for benchmarking purposes and as underlyings for ETFs, futures and options, structured products and passively managed investment funds.
STOXX Ltd., part of the Deutsche Boerse Group, is the manager of the STOXX and DAX indices under the European Benchmarking Regulation.