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NYSE Group Announces Enhanced Methodology for the NYSE Arca Biotechnology Index
[October 14, 2014]

NYSE Group Announces Enhanced Methodology for the NYSE Arca Biotechnology Index


NEW YORK --(Business Wire)--

The New York Stock Exchange, part of the Intercontinental Exchange (NYSE: ICE) global network of exchanges, today announced that it has enhanced the methodology for the NYSE Arca (News - Alert) Biotechnology Index (BTK), a widely followed benchmark for the biotechnology industry. The number of constituents held within the index will be increased from 20 to 30 names and the minimum criteria for initial and continued inclusion will be set at a higher level. The changes will be enacted at the next index rebalance effective before the open on Monday, October 20, 2014.

"The NYSE Arca Biotechnology Index is a leading benchmark covering the biotechnology industry for nearly 25 years," said Laura V. Morrison, Senior Vice President, Global Index and Exchange-Traded Products. "These changes are being made to ensure that the index continues to best represent the evolving biotechnology space by increasing diversification and applying enhanced metrics for index inclusion."

The NYSE Arca Biotechnology Index is an equal-dollar weighted index comprised of publicly traded companies that are a part of the biotechnology industry and that are primarily involved in the use of biological processes to develop products or provide services. Such processes include, but are not limited to, recombinant DNA technology, molecular biology, genetic engineering, monoclonal antibody-based technology, lipid/liposome technology, and genomics.

Below are the key changes to the NYSE Arca Biotechnology Index methodology:

  • Number of index constituents is increased to 30
  • Minimum initial market capitalization requirement is increased to $1 billion
  • Minimum initial 3-month average daily traded value requirement is increased to $1 million
  • Buffer rules inserted to miimize turnover and provide adequate continued inclusion criteria



The list of new constituents to be a part of the index effective for Monday, October 20, 2014 will be announced after the close on Wednesday, October 15, 2014. Those constituents will be equal-weighted as of the close of trading on Friday, October 17, 2014.

Revised Methodology


Trader Notice

Background on NYSE Group's Indices:

With a collective portfolio of over 230 benchmark indices, NYSE is a leading provider of indices. NYSE develops proprietary indices to provide investors and issuers with benchmarks that measure performance of key segments of the world economy. NYSE indices are available to be licensed as the basis for tradable products, including Exchange-Traded Funds (ETFs), to be launched in the future. For more information on NYSE index services please visit: www.nyse.com/indices

NYSE®, NYSE U.S. 100 Index®, NYSE Arca®, NYSE Composite Index® , Intellidex® and StrataQuant® are registered trademarks of NYSE Group, Inc., or its subsidiaries.

About NYSE Group

NYSE Group is a wholly-owned subsidiary of Intercontinental Exchange (NYSE: ICE), operator of the leading global network of exchanges and clearing houses. NYSE Group operates multi-asset exchanges, and a range of related data products and technology services. The company's equity exchanges - the New York Stock Exchange, NYSE MKT and NYSE Arca - trade more U.S. equity volume than any other exchange group. NYSE is the global leader in capital raising for listed companies, including the majority of technology IPOs globally in 2013. The company's equity options markets, NYSE Arca Options and NYSE Amex Options offer complementary market models. NYSE Group also provides comprehensive global connectivity services and a range of market data products to support efficient, transparent markets.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC (News - Alert)) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the SEC on February 14, 2014.

SOURCE: Intercontinental Exchange

ICE-EQ


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