5.4 Services and resources for issuers
SIX offers issuers a range of services and information channels related to equity indices. These help companies to comply with relevant requirements, to understand their index membership and to communicate with the market in a targeted manner.
Free-float message
The so-called free float is decisive for the calculation of many indices. This is the proportion of a company’s shares that are in free float, i.e. not held by major shareholders, the state or other long-term investors.
Companies must report this share so that SIX can correctly factor it into the index calculations. There is a standardized form available online for this purpose. It is advisable for companies to regularly check the reported free float and update it in the event of changes. This is because an underreported free float can lead to a lower index weighting, which in turn affects passive investors.
Forms and further information on free float reporting:
Index messages and methodology news
SIX publishes all changes in the indices on its own information page. These so-called “index messages” contain:
Information on upcoming adjustments to the index composition (annual index review);
Ad hoc of the index composition;
Information on market consultations and adjustments to the index methodology; and
It is useful for issuers to consult these notifications regularly or to subscribe to them automatically. This allows them to find out early on whether their company is affected by a change.
The message system is available at the following link:
Index newsletter
In addition to the regular communications, SIX offers a newsletter that provides concise information on important developments in the Swiss indices. The newsletter is aimed specifically at issuers and investors. Registration is possible via the following link:
https://www.six-group.com/en/market-data/indices/resource-hub/newsletter.html
Overview of index-based products
SIX indices serve as the basis for numerous financial products, such as:
ETFs (Exchange Traded Funds)
Structured products (e.g. barrier reverse convertibles, tracker certificates)
Futures and options
It is interesting for issuers to know in which products their shares may be included. This is because the more products that replicate an index, the higher the demand for the shares it contains.
The following link provides an overview of the products on SIX indices:
https://www.six-group.com/dam/download/market-data/indices/six-index-based-products-en.pdf