Rule Change for All Equity Indexes

Old

New

A merger or takeover is deemed successful if it has been declared wholly unconditional and has received approval of all regulatory agencies with jurisdiction over the transaction. The result of a merger or takeover is typically one surviving security and one or more non-surviving securities that may not necessarily be delisted from the respective trading system(s).

The following treatments are applied for mergers and takeovers containing stock terms:

A merger or takeover is deemed successful if it has been declared wholly unconditional and has received approval of all regulatory agencies with jurisdiction over the transaction. The result of a merger or takeover is typically one surviving security and one or more non-surviving securities that may not necessarily be delisted from the respective trading system(s).

Securities are deleted from the index at their last traded price. If a security is delisted or suspended from trading before the effective date of the deletion, the last traded price continues to be used until that date. An exception applies if it is known at the time of the announcement of the index treatment that the security will cease trading before the effective date. On the day no active trading has occurred, the closing value will reflect the value of the Deal Terms of the transaction.

The following treatments are applied for mergers and takeovers containing stock terms:

• If an index component merges with or takes over another index component:

The surviving security remains in the index and the other security is deleted immediately from the index. Its shares and float are adjusted according to the terms of the merger/takeover. The index market capitalization of the merged company corresponds to the market capitalization of the two separate companies.

• If an index component merges with or takes over another index component:

The surviving security remains in the index and the other security is deleted immediately from the index. Its shares and float are adjusted according to the terms of the merger/takeover. The index market capitalization of the merged company corresponds to the market capitalization of the two separate companies.

• If a non-index component merges with or takes over an index component:

– If the surviving security meets the eligible index universe requirements, it will be added to the index. Its shares and float will be adjusted according to the terms of the merger/takeover and will replace the current index component.

– If the surviving security does not meet the eligible index universe requirements, it will not be added to the index and the current index component will be deleted immediately from the index.

• If a non-index component merges with or takes over an index component:

– If the surviving security meets the eligible index universe requirements, it will be added to the index. Its shares and float will be adjusted according to the terms of the merger/takeover and will replace the current index component.

– If the surviving security does not meet the eligible index universe requirements, it will not be added to the index and the current index component will be deleted immediately from the index.

The following treatments are applied for mergers and takeovers with cash terms only:

• If a non-index component merges with or takes over an index component:

– The index component will be deleted.

The following treatments are applied for mergers and takeovers with cash terms only:

• If a non-index component merges with or takes over an index component:

– The index component will be deleted.