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Stoxx and FTSE plan free float change

Stoxx and FTSE both plan to recalculate their family of indices starting in September to more accurately demonstrate the number of shares available to investors, also known as free float.

In order to calculate the free float value of a company, stock holdings by governments, corporates and individuals that each exceed a certain percentage will be excluded from the overall weighting calculation. Stoxx has set its threshold at a low 5% while FTSE has eased its limits to 15% for exclusion. Holdings by investment management houses and funds are not counted as 'block ownership'.

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