The Wirecard scandal has also caught the German stock market on the wrong foot. As the first company in the German stock index Dax at all, the Munich-based payment service provider registered in June as a result of the alleged billion fraud insolvency. Nevertheless, the scandal, the group is still on the list of the 30 major German companies. Deutsche Börse wants to change the rules for the Dax-composition – and Wirecard, which was faster than had previously been intended to get rid of.
As the Dax has been checked-composition so far?
the composition of The Dax was previously adjusted regularly every three months. For insolvency cases, such as Wirecard, however, were not provided for any immediate reactions. This was not necessary, as usually a period of decline preceding the bankruptcy filing, and the company are eliminated in the long-running (large) indexes.
The next scheduled adjustment to the Dax for the 21st century. Scheduled for September, says Andreas von Brevern, spokesman for the German stock exchange. Basis to ensure, among other things, market capitalization and stock exchange turnover of the companies. Although it is expected that Wirecard also flies on this basis, the Dax – but only in the autumn.
What is planned instead?
The price of Wirecard is now so low that it falls in the Dax, a total of scarcely more weight. Nevertheless, the German stock exchange wants to get rid of the insolvent scandal group as quickly as possible and proposes a on the experience with Wirecard-based Change: in the Future, according to von Brevern Dax companies to the Index after filing for bankruptcy exit within two trading days. They should be excluded for one year from the indices of the Dax family, i.e. the M-Dax, Tec-Dax and S-Dax. For these indices, the German stock market, the Reform should apply to.
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when to Wirecard from the Dax?
The Deutsche Börse has submitted the proposed rule changes to market participants – i.e. investors or Fund managers – in the context of a survey. The results, according to the will of Brevern up published Thursday. Subsequently, the proposed rule must be finalized changes, which should take about a week, before they are applied to Wirecard. “A possible exclusion could then take place in August,” said von Brevern.
Who could be followed for Wirecard?
If the first in the year 2018, the Dax recorded group is excluded, as expected from the group of the 30 largest German companies, needed a successor. It was speculated that instead of the financial service provider is currently in the M-Dax-listed food delivery service Delivery Hero could in the Dax to rise. But also by the fragrance manufacturer Symrise is regarded as a candidate.
Von Brevern did not want to comment. However, there are clear guidelines for the follow-UPS: This had to be landed at the last Review in July in the rank list.
