FTSE UK Index Series: Difference between revisions
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'''[[FTSE UK Index Series]]''' is a family of [[Stock market index|stock market indices]] designed to represent the performance of companies and securities across different capitalisation and industry segments of the [[United Kingdom]] equity market. The series is calculated and maintained by [[FTSE Russell]], which is wholly owned by the [[London Stock Exchange Group]] (LSEG). :contentReference[oaicite:0]{index=0} | '''[[FTSE UK Index Series]]''' is a family of [[Stock market index|stock market indices]] designed to represent the performance of companies and securities across different capitalisation and industry segments of the [[United Kingdom]] equity market. The series is calculated and maintained by [[FTSE Russell]], which is wholly owned by the [[London Stock Exchange Group]] (LSEG). :contentReference[oaicite:0]{index=0} | ||
The FTSE UK Index Series includes major UK equity benchmarks such as the [[FTSE 100]], [[FTSE 250]], and [[FTSE 350]], together with other indices covering different segments and investment characteristics. | The FTSE UK Index Series includes major UK equity benchmarks such as the [[FTSE 100]], [[FTSE 250]], and [[FTSE 350]], together with other indices covering different segments and investment characteristics. | ||
==Purpose== | ==Purpose== | ||
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* index-based derivatives. | * index-based derivatives. | ||
FTSE Russell states that its indices are used by institutional and retail investors to benchmark investment performance and create investment products. | FTSE Russell states that its indices are used by institutional and retail investors to benchmark investment performance and create investment products. | ||
==Major indices== | ==Major indices== | ||
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The [[FTSE 100]] comprises the 100 most highly capitalised eligible companies listed on the [[London Stock Exchange]]. | The [[FTSE 100]] comprises the 100 most highly capitalised eligible companies listed on the [[London Stock Exchange]]. | ||
It is commonly regarded as a benchmark for large-cap UK-listed equities. | It is commonly regarded as a benchmark for large-cap UK-listed equities. | ||
===FTSE 250=== | ===FTSE 250=== | ||
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The [[FTSE 250]] comprises mid-capitalised companies not covered by the FTSE 100. | The [[FTSE 250]] comprises mid-capitalised companies not covered by the FTSE 100. | ||
FTSE Russell states that the FTSE 250 represents approximately 15% of UK market capitalisation. | FTSE Russell states that the FTSE 250 represents approximately 15% of UK market capitalisation. | ||
===FTSE 350=== | ===FTSE 350=== | ||
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</math> | </math> | ||
The actual index calculation incorporates the FTSE Russell methodology, including adjustments for free float, corporate actions, share changes, and other relevant factors. | The actual index calculation incorporates the FTSE Russell methodology, including adjustments for free float, corporate actions, share changes, and other relevant factors. | ||
==Free-float adjustment== | ==Free-float adjustment== | ||
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</math> | </math> | ||
The divisor is adjusted when necessary to ensure that corporate actions and constituent changes do not create artificial movements in the index. | The divisor is adjusted when necessary to ensure that corporate actions and constituent changes do not create artificial movements in the index. | ||
==Index reviews== | ==Index reviews== | ||
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* December. | * December. | ||
The reviews can result in changes to index constituents, free-float factors, and shares in issue. Corporate actions can also result in changes outside the regular review cycle. | The reviews can result in changes to index constituents, free-float factors, and shares in issue. Corporate actions can also result in changes outside the regular review cycle. | ||
==Eligibility== | ==Eligibility== | ||
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* trading characteristics. | * trading characteristics. | ||
FTSE Russell amended certain UK Index Series eligibility rules in 2025, including provisions concerning securities traded in euros or U.S. dollars and fast-entry thresholds. | FTSE Russell amended certain UK Index Series eligibility rules in 2025, including provisions concerning securities traded in euros or U.S. dollars and fast-entry thresholds. | ||
==Fast entry== | ==Fast entry== | ||
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Following methodology changes effective from the September 2025 review, an eligible company listing on the London Stock Exchange can qualify for fast entry if it satisfies the applicable ranking and investable-market-capitalisation requirements. | Following methodology changes effective from the September 2025 review, an eligible company listing on the London Stock Exchange can qualify for fast entry if it satisfies the applicable ranking and investable-market-capitalisation requirements. | ||
FTSE Russell stated that a company ranking 225th or above on the first day of unconditional dealings and having an investable market capitalisation of at least GBP 1 billion could, if otherwise eligible, enter the FTSE 100 or FTSE 250 after its fifth trading day. | FTSE Russell stated that a company ranking 225th or above on the first day of unconditional dealings and having an investable market capitalisation of at least GBP 1 billion could, if otherwise eligible, enter the FTSE 100 or FTSE 250 after its fifth trading day. | ||
==Liquidity requirements== | ==Liquidity requirements== | ||
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Liquidity is one of the factors considered in the eligibility and maintenance of securities within the FTSE UK Index Series. | Liquidity is one of the factors considered in the eligibility and maintenance of securities within the FTSE UK Index Series. | ||
FTSE Russell's methodology overview states that liquidity is tested annually in June, while other index maintenance activities occur during the quarterly review cycle. | FTSE Russell's methodology overview states that liquidity is tested annually in June, while other index maintenance activities occur during the quarterly review cycle. | ||
==Corporate actions== | ==Corporate actions== | ||
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* changes in free float. | * changes in free float. | ||
FTSE Russell applies adjustments designed to prevent corporate actions from creating artificial discontinuities in index performance. | FTSE Russell applies adjustments designed to prevent corporate actions from creating artificial discontinuities in index performance. | ||
==Price and total-return indices== | ==Price and total-return indices== | ||
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</math> | </math> | ||
The exact calculation depends on the specific index variant. | The exact calculation depends on the specific index variant. | ||
==Currency treatment== | ==Currency treatment== | ||
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The FTSE UK Index Series can include securities whose trading currency is not GBP under the applicable eligibility rules. | The FTSE UK Index Series can include securities whose trading currency is not GBP under the applicable eligibility rules. | ||
For index calculations, non-GBP security prices are converted into the index currency using the relevant exchange rates. FTSE Russell's calculation guide specifies the use of real-time exchange rates for intraday calculations and a series-specific exchange rate for end-of-day calculations. | For index calculations, non-GBP security prices are converted into the index currency using the relevant exchange rates. FTSE Russell's calculation guide specifies the use of real-time exchange rates for intraday calculations and a series-specific exchange rate for end-of-day calculations. | ||
==Investment products== | ==Investment products== | ||
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FTSE Russell conducted the June 2026 annual review of the FTSE UK Index Series. | FTSE Russell conducted the June 2026 annual review of the FTSE UK Index Series. | ||
The review resulted in changes to both the FTSE 100 and FTSE 250. The changes were implemented after the close of business on 19 June 2026 and became effective from the start of trading on 22 June 2026. | The review resulted in changes to both the FTSE 100 and FTSE 250. The changes were implemented after the close of business on 19 June 2026 and became effective from the start of trading on 22 June 2026. | ||
==Importance== | ==Importance== | ||
The FTSE UK Index Series provides a comprehensive framework for measuring different segments of the UK equity market. Its major indices, including the FTSE 100, FTSE 250, and FTSE 350, are widely used as benchmarks for investment performance, portfolio construction, asset allocation, risk management, and financial products. Its rules-based methodology and periodic reviews are intended to maintain representative coverage of the underlying UK equity market. | The FTSE UK Index Series provides a comprehensive framework for measuring different segments of the UK equity market. Its major indices, including the FTSE 100, FTSE 250, and FTSE 350, are widely used as benchmarks for investment performance, portfolio construction, asset allocation, risk management, and financial products. Its rules-based methodology and periodic reviews are intended to maintain representative coverage of the underlying UK equity market. | ||
==See also== | ==See also== | ||