Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
After Wirecard, a pitch for bigger DAX with stricter rules
Published Oct 05, 2020 02:22AM ET
Updated Oct 05, 2020 04:45AM ET
© Reuters. FILE PHOTO: A general view shows the German stock exchange (Deutsche Boerse) in Frankfurt
FRANKFURT (Reuters) - Germany's blue-chip DAX (GDAXI) index should expand to 40 from 30 companies with tougher membership criteria, exchange operator Deutsche Boerse (DE:DB1Gn) said on Monday while outlining proposed reforms in the wake of the Wirecard (DE:WDIG) accounting scandal.
In a set of proposals published on its website, Deutsche Boerse also suggested index bans for companies that fail to submit quarterly figures on time.
"It is no secret that I personally would welcome the expansion of the DAX 30 to a DAX 40," Deutsche Boerse Chief Executive Theodor Weimer said in an emailed statement.
Since its founding in 1988, the DAX has been Germany's answer to the Dow Jones Industrial Average in New York and the FTSE in London, with 30 members forming the corporate elite in one of the world's largest economies.
Most of the index's founding members have since dropped out.
The most recent departure was payments company Wirecard, which in a blow to Germany's capital markets, filed for insolvency just two years after its promotion to the index. The payments company owed creditors billions in what auditor EY described as a sophisticated global fraud.
Weimer has since changed rules to allow for a quicker expulsion of companies in the wake of the scandal.
The rules proposed on Monday would make proven profitability a requirement for joining the DAX.
The proposal also suggested reducing the number of constituents in the mid-cap index (MDAXI) to 50 from 60.
Companies where sales of controversial weapons make up more than 10% of revenue should also be excluded from the DAX selection indices, which include the DAX, MDAX, TecDAX and SDAX, Deutsche Boerse said.
Investors now have until Nov. 4 to respond to the proposal. Deutsche Boerse said it would publish the results of the consultation and any decision on changes to the index rules, by Nov. 23.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.