Deutsche Boerse proposes expanding DAX to 40 companies

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The number of companies included in Germany's blue-chip DAX index should rise to 40 from 30 and there should be tougher conditions for membership, exchange operator Deutsche Boerse said on Monday.

In a set of proposals outlining reforms to Germany's leading index, which are being put forward to investors in a consultation, Deutsche Boerse also suggested reducing the number of constituents in the mid-cap index“It is no secret that I personally would welcome the expansion of the DAX 30 to a DAX 40,” Chief Executive Theodor Weimer said.scandal and has proposed banning companies from the DAX if they fail to submit their quarterly figures on time.

In addition, proven profitability should be a requirement for joining the DAX, according to the proposals. Companies where sales of controversial weapons make up more than 10% of sales should also be excluded from the DAX selection indices, which include the DAX, MDAX, TecDAX and SDAX, Deutsche Boerse said.

Investors now have until Nov. 4 to voice their opinions on the proposal. Deutsche Boerse said it would publish the results of the consultation, as well as any decision on changes to the index rules, by Nov. 23. Reporting by Hans Seidenstuecker; Writing by Caroline Copley; Editing by Riham Alkousaa and Maria Sheahan

 

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rwang0 I welcome the expansion.

Even with 30 members, the smallest DAX members are worth less than €10 bn. Extending to 40 will bring the bar lower. Note that less than €10 bn mcap is a mid-cap stock in the US. DAX will be even less 'prestigious'

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