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Free float minimum to become 25%

Following a recent consultation the FTSE Group has announced that the minimum free float for UK incorporated companies in the FTSE UK Index Series will be increased from 15% to 25%, from 1 January 2012. Companies who have already been admitted have 24 months to comply.

Mark Makepeace CEO of FTSE Group commented, “With the guidance and direction of FTSE’s independent practitioner committees, FTSE regularly consults the market on changes to the Ground Rules of its indices to ensure that the indices continue to meet investors’ requirements and define and lead global standards in indexing.  Both FTSE and our shareholder, the London Stock Exchange Group recognise that this strong stance on governance underpins the value of our business.”

83% of respondents agreed that FTSE should apply a minimum free float threshold of 25% for UK incorporated companies when determining eligibility for inclusion in the FTSE UK Index Series (including the FTSE All-Share and the FTSE 100 Index).