NEW YORK, March 24, 2014 (GLOBE NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced changes to the methodology of the NASDAQ Select Canadian Preferred Share Index.
The NASDAQ Select Canadian Preferred Share Index is designed to track the performance of the preferred security segment of the Toronto Stock Exchange.
The methodology changes aim to expand the Index's representation of the preferred market while also adding enhanced selection screens to increase the tradability of the index and attempt to reduce risk characteristics.
The previous Index methodology applied the liquidity and market-capitalization screening to include the top 50 most liquid securities. Effective prior to market open on Thursday, May 1, 2014, the Index will contain 100 securities. The ranking process selection of the securities will be based on high relative yield and low relative volatility. The new methodology will maintain the liquidity screening and the continued application of weighting by market capitalization.
Following the changes made effective prior to market open on Thursday, May 1, 2014, the Index Evaluation review will continue to be conducted annually in March. The annual changes will continue to become effective after the close of trading on the third Friday in March.
For a complete list of the Index methodology changes, please visit https://indexes.nasdaqomx.com/docs/NASDAQ_Select_Canadian_Preferred_Share_Index_Notice.pdf.
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Source:The NASDAQ OMX Group, Inc.