Wirecard is sinking in the maelstrom of its accounting scandal. Many investors are wondering how such a crash in a Dax-listed company is possible, and most importantly: What needs to happen in order to the payment service provider is excluded from the top League of the German stock exchange?
From the stock exchange operator, a sober answer is: "Deutsche Börse is systematically the existing rules and regulations and the legal requirements." In other words: In September, the frequency will be reviewed according to whether the average price of Wirecard AG stock in the last 20 days of trading weighted with the Trading volumes will be sufficient for the Dax.
To small for the M-Dax?
to include the current market value of less than 3 billion Euro Wirecard sogarim M-Dax would be the lightweights. Depending on how much of the investor interest and, thus, the trade turnover in September still, could be threatened by a direct descent in the S-Dax. This has never happened before.
For a premature expulsion from the Dax, it is in the rules and regulations of the stock exchange, hardly a hand. Even a bankruptcy filing would only be taken into consideration for the next regular index review. Only if such a request is rejected for lack of assets, or the company is liquidated, it would be deleted prematurely from the Index.
Important for ETF investors
the eyes of the German stock exchange closes prior to the case, Wirecard: "We of our index rules, also against the Background of the dynamics of the past weeks and months, check regularly," says a spokesman.
"events of the single Dax values are incorporated into our Considerations, unless meaningful conclusions for the composition of the Index can draw."
If Wirecard is in the Index or not, not least for ETF investors, because shares are still in the Dax-Fund. After the price collapse of the past few days, the weighting of Wirecard is among the 30 Dax-listed company, but only 0.17 percent.Updated Date: 23 June 2020, 10:20