Commodity firms in firing line as FTSE shakes up entry rules

The FTSE Group is to raise its minimum free float requirement for companies listing in the UK from 15% to 25% after a market consultation.

The consultation findings showed a clear preference for raising free float requirements to 25% when determining eligibility for inclusion in FTSE UK indices, with 83% of respondents voting in favour of the proposal and 17% voting against. The change will come into place on 1 January 2012. Companies previously admitted to the FTSE All Share with a free float of less than 25% will be given 24 months to comply with the new rules. The grandfathering period applies to five resources companies: ENRC, Essar Energy, Evraz, Ferrexpo and Fresnillo. The FTSE will also maintain the new 25% rul...