(January 18 – 16:40 ET) – Standard & Poor’s Canadian Index Operations is announcing a change to the TSE 300 annual revision process.

Candidates for addition to or deletion from the TSE 300 will now be assessed on the basis of the February month-end float-adjusted market value calculated using the February trade-weighted average price. In the past, the market value of index candidates was calculated on the basis of their trailing 12-month trade-weighted average price.

The TSE says the reason for this rule change is to minimize situations whereby companies are inappropriately added or deleted from the index based on market values which may have prevailed several months prior to rebalancing, but which are not the case at the time of rebalancing.

By shortening the evaluation period and making this period closer to the rebalancing date, Standard & Poor’s believes that the TSE 300 will better reflect Canadian equity markets, especially in fast-moving and volatile trading environments.

The rule change for the TSE 300 will be effective immediately, and the new rule will be used for the upcoming annual rebalancing scheduled for the end of February. Changes to the index will still be announced in the first week of March.
-IE Staff