MarketVector Indexes Announces Rule Changes Effective September 2022

FRANKFURT, Germany (July 29, 2022) – MarketVector Indexes GmbH announces the following rule changes effective with implementation of the quarterly review in September: 

• For the MVIS^® Global Uranium & Nuclear Energy Index (MVNLR), the lower buffer for the sector exposure will be increased to 40% (currently 25%). In addition, the exception regarding the addition of companies with lower revenue in the sector will be removed. 
• The exception for BlueStar^® branded indexes (except BLOGR/BLOGT) regarding the pricing sources will be removed. Going forward, BlueStar^® Indexes will follow the standard defined in chapter 3.5 of the Index Guide. 
• The BlueStar^® Global GreenTech Index (BGTQ) and the BlueStar^® Total Security Index (BTOT) will allow the inclusion of companies trading in the Swedish, Norwegian and Danish markets. The same exception as in Listing Eligibility Scheme 3 will apply. Listing Eligibility Scheme 4 will be updated accordingly. 
• For the MVIS^® North America Cannabis Industry Index (MVNACB), the notional value for the liquidity overlay will decrease to 15mln USD. 
• Component deletions in the BlueStar^® Top 10 US Banks Index (BUBNK) and the BlueStar^® Top 10 US Residential Real Estate Index (BURRT) will be handled the same way as in the BlueStar^® Top 10 US Listed Alternative Asset Managers Index (BUALT) and the BlueStar^® Top 10 US Office REITs Index (BUORT) - consistent replacements for all Top 10 indexes. As the BURRT index is equally weighted, replacements due to component mergers will be added with a 10% weight and not by market capitalization as in the other 3 indexes. In all other cases with the weight of the deleted stock. 
• For the determination of the full market capitalization of companies in junior/small-cap index selections, the most liquid share line is taken into consideration. This excludes depository receipts (DRs) and similar units based on the underlying – if available. The latter is to avoid a potential DR premium for the calculation of the market capitalization. 
• MarketVector Indexes^TM will only implement share changes (which are not related to corporate actions with price impact) once per month (on the first business day). Chapter 6.4 will be adjusted accordingly.
• The following indexes will no longer consider a minimum component weight in the capping strategy:
  • BlueStar^® Artificial Intelligence Index (BAI), 
  • BlueStar^® E-Healthcare Index (BEHC) ,
  • BlueStar^® Electric Vehicle Industry Index (BEV) ,
  • BlueStar^® Europe Travel and Vacation Index (BETOR) ,
  • BlueStar^® Fintech Index (BFNQ), 
  • BlueStar^® Global 5G Connectivity Index (BGFG) ,
  • BlueStar^® Robotics Index (BRBT),
  • BlueStar^® Solar Energy Industry Index (BSOLR),
  • BlueStar^® Top 10 US Banks Index (BUBNK),
  • BlueStar^® Top 10 US Listed Alternative Asset Managers Index (BUALT),
  • BlueStar^® Top 10 US Office REITs Index (BUORT),
  • BlueStar^® Travel and Vacation Index (BTOUR),
  • BlueStar^® Wind Energy Industry Index (BWIND).
• The following indexes will no longer consider a minimum exposure to USD-denominated securities: 
  • BlueStar^® Artificial Intelligence Index (BAI) ,
  • BlueStar^® Fintech Index (BFNQ), 
  • BlueStar^® Robotics Index (BRBT) ,
  • BlueStar^® Asia Technology Index (BSEAQ) ,
  • BlueStar^® China Internet Software Index (BCHNQ).
• The minimum component number for the BlueStar^® E-Healthcare Index (BEHC) will be reduced to 40.
• For clarification regarding the 5%-50% rule in chapter 3.2.20 of the index guide: due to the minimum weight constraint, the components of any tier add up to more than the target tier weight, the weight of uncapped components will be reduced on a pro-rata basis until  the aggregate weight of components within each tier equals the target tier weight (meaning this rule supersedes other components of the respective weighting scheme). Pure-play caps are still considered.
• Both the Bond Index Guide (chapter 4.4) and the Equity Index Guide (chapter 5.7) will allow MarketVector Indexes^TM to exercise discretion in case of Extraordinary Events. These may include trading halts, regulatory actions, fraud, tradability, etc.
• Though fixed income indexes are not reviewed on the quarterly review dates, our calculation agent ICE announced a change regarding the pricing time for USD securities on that date. It will be 4pm EST going forward. The following indexes are affected:
  • MVIS^® Moody's Analytics US BBB Corporate Bond Index (MVBI),
  • MVIS^® Moody's Analytics US Investment Grade Corporate Bond Index (MVCI).   

The following changes will be effective in the review to be implemented effective September, as indexes are reviewed on a monthly basis: 

• The exchange list in chapter 5.2.1 will be replaced by exchanges classified as AA or A by CryptoCompare’s Exchange Benchmark. 
• Due to a change in the review calendar of CryptoCompare’s Exchange Benchmark, the semi-annual exchange review will be performed a month later than currently. In 2022, the standard review will be run in August, plus the review according to the new scheme will be run in September.

Kind regards,      
MarketVector Indexes^TM