Markit Index Standard Treatment Index Manual / 7 May 2021

T180614 Markit Index Standard Treatment | CA003

1 Introduction...... 4 2 Terminology and Notation...... 5 3 Divisor Methodology...... 8 4 Dividend Points Calculation...... 9 5 Indices Conversion to Different Currencies...... 10 6 Corporate Actions Treatment Specifications...... 11 6.1 General rules of corporate actions treatment...... 11 6.1.1 Price Return, Net Return and Gross Return index adjustments...... 11 6.1.2 Corporate actions implementation date...... 11 6.2 Cash Dividends ...... 11 6.2.1 Regular Cash Dividend...... 11 6.2.1.1 Definition ...... 11 6.2.1.2 Treatment ...... 12 6.2.2 Special Cash Dividend...... 13 6.2.2.1 Definition ...... 14 6.2.2.2 Treatment ...... 14 6.2.3 Capital Return...... 16 6.2.3.1 Definition ...... 16 6.2.3.2 Treatment ...... 16 6.2.4 Dividend Taxation...... 17 6.3 Merger...... 18 6.3.1 Definition ...... 18 6.3.2 Treatment ...... 18 6.4 Spin-off...... 20 6.4.1 Definition...... 20 6.4.2 Treatment...... 20 6.5 Exchange...... 24 6.5.1 Definition...... 24 6.5.2 Treatment...... 24 6.6 Conversion...... 26 6.6.1 Definition...... 26 6.6.2 Treatment...... 26 6.7 Stock Dividend...... 28 6.7.1 Definition...... 28 6.7.2 Treatment...... 28 6.8 Stock Split and Reverse Stock Split...... 32 6.8.1 Definition...... 32 6.8.2 Treatment...... 32 6.9 Rights Issue...... 33 6.9.1 Definition...... 33 6.9.2 Treatment...... 34

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6.10 Suspension...... 37 6.10.1 Definition...... 37 6.10.2 Treatment...... 37 6.11 Delisting...... 38 6.11.1 Definition...... 38 6.11.2 Treatment...... 38 6.12 Write-Up/Off of Capital...... 39 6.12.1 Definition...... 39 6.12.2 Treatment ...... 39 6.13 Redenomination...... 39 6.13.1 Definition ...... 39 6.13.2 Treatment...... 39 A Withholding Tax (last updated in April, 2020)...... 40 B Overall Eligible Exchanges...... 46

T180614 Markit Index Standard Treatment | CA003

1 Introduction

IHS Markit uses transparent and standard rules for index calculation and corporate event treatments. This ensures that index users can easily replicate IHS Markit’s indices in order to support investments and trading activities.

The scope of the Markit Index Standard Treatment document is to define the core corporate events and their standard treatment for indices calculated and maintained by IHS Markit. The treatment described in this document is IHS Markit’s recommendation based on market standards and what is deemed to be the best practice as well as the simplest and the most practical approach.

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2 Terminology and Notation

Closing Number of Shares ( ) The total outstanding number of stock shares represented in the index on the business day .

Closing Share Price ( ) Actual market price of stock as at day on the close of the index session represented in index currency. If the close market price for the day is not defined on the market, the latest available share price is taken for index calculations.

Closing Weighting factor ( ) Security-level weighting factor that defines the portion of number of shares that is included in security market value calculation on the business day . Weighting factor may be based on the share investability specifications such as security free float and ownership restriction, but also on the index specific capping rules.

Constituent Market Value ( ) Market capitalisation of an individual index constituent included in the index total market capitalisation calculation. Market value is a product of the constituent share price represented in the index currency, the constituent number of shares and the constituent weighting factor. Both closing and opening values of the constituent market value shall be defined for index calculations.

Corporate Action A corporate action (or a corporate event) is a legal activity carried out by a company that changes the corporate structure or alters the financial condition of the company. Corporate actions may directly impact a company’s number of shares and/or the share price. A constituent’s index membership and its weight in the index can be impacted by corporate actions.

Custodian bank fee ( ) Custodian bank fee on depository receipts dividends.

Date ( ) Date is the index calculation time. Each index session has an opening and a closing component denoted as and , respectively. Date is defined as the current index session, where for instance is the previous index session and is the next index session.

Effective Date The date on which the corporate action is applied to the index calculation.

Eligible stock exchange Stock exchange that is eligible for an index according to index methodology. Only securities listed on eligible stock exchanges are considered for index inclusion. The Table 1: provides the list of eligible stock exchanges.

Ex-Date The first date on which a listed security is considered without entitlement to participate in the capital change event. For example, for a dividend event, this is the date from which the seller and not buyer of a stock is entitled to a dividend. After the ex-date, a listed security is said to trade ex-dividend, meaning the dividend is excluded.

Gross Dividend Amount ( ) The value of dividend (before tax) scheduled to be paid for holding 1 unit of stock with the ex-date on day , represented in the index currency.

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Gross total return index ( ) Index that measures market performance including gross income from cash distributions.

Gross dividend points ( ) Cumulated amount of gross dividends of index constituents on day represented in proportion to index market value.

Net dividend points ( ) Cumulated amount of net dividends of index constituents on day represented in proportion to index market value.

Index Constituent Security included in the index composition.

Index Currency The base currency into which all components of the index calculation are translated.

Net dividend amount ( ) The value of dividend less any withholding taxes applicable scheduled to be paid for holding 1 unit of stock with the ex- date on day , represented in the index currency.

Net total return index ( ) Index that measures market performance including income from cash distributions net of withholding tax.

Opening Number of Shares ( ) Expected opening number of shares of stock on the date calculated as closing number of shares of stock on the date adjusted for any corporate action effective on day .

Opening Share Price ( ) Expected opening price of stock on the date calculated as closing share price on the date adjusted for any corporate action effective on day .

Opening Weighting factor ( ) Expected opening weighting factor of stock on the date calculated as closing weighting factor on the date adjusted for any corporate action effective on day or by a regular or an extraordinary index re-weighting according to the index methodology.

Parent Security Primary security that triggers a corporate action. Parent security is unique per corporate action.

Pay-out Ratio ( ) Ratio that defines how the number of shares of parent and/ or pay-out security are affected according to the terms of a corporate action.

Pay-out Security Secondary security to which the corporate action application may refer in addition to the parent security. For example, in case of a spin-off pay-out security refers to the spun off share. One corporate action may involve more than one pay-out security in exceptional cases.

Price return index ( ) Index that does measures market performance excluding the income from regular cash distributions.

Subscription Price ( ) The price at which new shares are offered for a corporate action associated with stock on the ex-date , represented in index currency.

Tax Rate ( ) The tax amount deducted at source by the company making the dividend payment on share which is applicable to non- resident shareholders. The tax rate is applied to dividend income before the distribution of a dividend payment to shareholders. The tax rates are usually determined by the incorporation of the company is incorporated. The Table 1: Withholding Tax provides the applied rates.

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Theoretical opening price ( ) Approximate opening price on the ex-date of a security represented in the index currency. The theoretical opening price is estimated for a security that is not trading on the date , and is based on publicly available information such as primary exchange estimates, company valuations, event announcements, spin-off prospectus or parent’s financial reports.

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3 Divisor Methodology

Index market value and index divisor are the key components of the index calculations per divisor methodology.

The closing market value of an index constituent, is the product of: 1) the closing price of this stock at day , 2) the closing number of shares of this stock as at day and 3) the closing weighting factor as at day .

The opening market value of any index constituent, for instance stock , is the product of: 1) the opening price of this stock at day , 2) the opening number of shares of this stock as at day and 3) the opening weighting factor as at day .

Index market value refers to the sum of the market values of all constituents included in this index.

The closing index market value is:

Correspondingly, the opening Index market value is:

Index divisor is an essential tool used to maintain the continuity of index values regardless of valuation changes resulting from corporate actions. The starting value of the index divisor ( ) is set equal to by the index level at the inception .

At index inception date :

On each index business day other than :

Finally, the index is determined as:

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4 Dividend Points Calculation

Gross dividend points for gross return indices are calculated using the following formula:

Net dividend points for net return indices are calculated using the following formula:

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5 Indices Conversion to Different Currencies

All stock prices are converted to the index currency according to the following rules:

1. For USD indices: All non-USD share prices are converted to USD for index calculation. Corporate action amounts are converted to USD as well. Adjustments for corporate actions to calculate share’s open price are applied afterwards. 2. For Non-USD indices: Share prices in local currency different from index currency are converted to index currency for index calculation. To calculate share's open price, price adjusted for corporate actions is calculated in USD (as for USD indices calculation), converted to share’s local price and converted to index currency afterwards.

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6 Corporate Actions Treatment Specifications

6.1 General rules of corporate actions treatment

The following general rules apply to the implementation of corporate events:

6.1.1 Price Return, Net Return and Gross Return index adjustments All corporate actions adjustments are the same for price, net and gross return indices except for cash dividend and special cash dividend adjustments.

6.1.2 Corporate actions implementation date In general, a security is expected to be priced on the corporate action application date. However, if the security does not trade on the corporate action implementation date, the opening share price and number of shares on the effective date will be used in the constituent close market value calculation before the constituent starts trading.

If a corporate action implementation date is a date when the index is not calculated, the event will be implemented on the next index calculation day.

6.2 Cash Dividends

6.2.1 Regular Cash Dividend Regular Cash Dividend also refers to Dividend option.

6.2.1.1 Definition

Dividends are payments made by a company to its shareholders out of company’s profits or reserves in accordance to company’s normal payment cycle. Normally, when a company earns a profit, it can be either re-invested in the business or it can be paid to the shareholders as a dividend.

A company may offer its shareholders the choice of receiving the dividend in cash or in shares (optional dividend). It is assumed that investors always select the cash as default option a) on the ex- date where a stated equivalent of stock is announced and b) on the pay-date where an undetermined amount of stock is announced based on earnings and profits to be distributed at a future date.

A cash dividend greater than 15% of the underlying share price may be classed as a special cash dividend (Section 6.2.2 — Special Cash Dividend).

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6.2.1.2 Treatment

Gross dividend amount is applied to gross return indices, whereas net dividend amount is applied to net return indices. Price return indices are not adjusted for cash dividends. Both gross and net dividend amounts on depository receipts will be reduced by custodian bank fees where applicable.

Ordinary cash dividends confirmed prior to the ex-date are applied on the ex-date. However, if the dividend amount is not confirmed before the ex-date, or the dividend announcement is available after the ex-date only (for example, Korean late dividends), the adjustment applies on the next business day after the information on the dividend amount becomes publicly available.

Shares Price Weight Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Regular Cash No adjustment Price decrease No adjustment Divisor decrease Ex-date Dividend confirmed of parent security reflecting the index before the ex-date reflecting the regular market value cash dividend decrease amount

Regular Cash No adjustment Price decrease No adjustment Divisor decrease Next business day Dividend confirmed of parent security reflecting the index after the information after the ex-date reflecting the regular market value is available cash dividend decrease amount

Example 1: Regular cash dividend payment where custodian bank fee is not applicable

Company announces the payment of a regular dividend of USD 5. The ex-date is day .The tax rate applicable to this dividend is 30% and the share closing price on the day is USD 300.

Corresponding adjustments are calculated using the following formulas:

For GTR indices:

For NTR indices:

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Terms

Gross cash dividend amount per share USD 5

Withholding tax rate USD 30%

Share closing price USD 300

Adjustments

Adjusted gross price (GTR Indices)

Adjusted net price (NTR Indices)

Example 2: Regular cash dividend payment where custodian bank fee is applicable

Company announces the payment of a regular dividend of USD 5. The ex-date is day . The tax rate applicable to this dividend is 30%, custodian fee is USD 0.2 and the share closing price on the day is USD 300.

Corresponding adjustments are calculated using the following formulas:

For GTR indices:

For NTR indices:

Terms

Gross cash dividend amount per share USD 5

Withholding tax rate 30%

Custodian bank fee USD 0.2

Share closing price USD 300

Adjustments

Adjusted gross price (GTR Indices)

Adjusted net price (NTR Indices)

6.2.2 Special Cash Dividend Special Cash Dividend refers also to Cash distribution from non-eligible securities sales.

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6.2.2.1 Definition

Special cash dividends are distributions of cash to company shareholders that occur outside of the normal payment pattern established historically by the company. Special cash dividends may occur for different reasons, e. g. shares premium distribution, sale of a business assets or liquidation payment.

Whether a dividend is funded from operating earnings or from other sources of cash does not affect the determination of whether it is a special dividend. Instead, a special dividend is considered when the market perceives it as a special dividend being paid on a non-recurring cycle. Normally, the distributing company describes it as a “special”, “extra”, “irregular”, or other similar term in the dividend announcement.

In cases where the dividend amount is greater than 15% of the underlying share price, the dividend may be classed as a special cash dividend.

6.2.2.2 Treatment

The gross dividend amount is applied to price return and gross return indices, whereas the net dividend amount is applied to net return indices. Both gross and net dividend amounts on depository receipts will be reduced by a custodian bank fees when applicable.

Shares Price Weight Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Special Cash No adjustment Price decrease No adjustment Divisor decrease Ex-date Dividend of parent security reflecting the reflecting the special opening index cash dividend market value amount decrease

Example 1: Special cash dividend payment where custodian bank fees are not applicable

Company announces the payment of a special cash dividend of USD 50. The ex-date is day . The tax rate applicable to this dividend is 30% and the share closing price on the day is USD 300.

Corresponding adjustments are calculated using the following formulas:

For PR and GTR and indices:

For NTR indices:

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Terms

Gross special cash dividend amount per share USD 50

Withholding tax rate USD 30%

Share closing price USD 300

Adjustments

Adjusted gross price (PR and GTR Indices)

Adjusted net price (NTR Indices)

Example 2: Special cash dividend payment where custodian bank fees are applicable

Company announces the payment of a special cash dividend of USD 50. The ex-date is day . The tax rate applicable to this dividend is 30%, custodian fee is USD 2 and the share closing price on the day is USD 300.

Corresponding adjustments are calculated using the following formulas:

For PR and GTR indices:

For NTR indices:

Terms

Gross special cash dividend amount per share USD 50

Withholding tax rate 30%

Custodian bank fee USD 2

Share closing price USD 300

Adjustments

Adjusted gross price (GTR Indices)

Adjusted net price (NTR Indices)

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6.2.3 Capital Return Capital return also refers to:

• Capital repayment • Capital distribution • Capital gains distribution • Shares premium dividend • Liquidation dividend/payment

6.2.3.1 Definition

A capital return or a capital repayment is a return to shareholders of all or any portion of the issued capital of a company or the return of capital in excess of a company’s requirements.

A capital return or a capital repayment is an extraordinary event when compared to a company's dividend policy. A capital return or a capital repayment is generally an extraordinary payment, is paid outside the historical dividend payment pattern of the company, and is a dividend taken from paid- in capital rather than current earnings or retained earnings. A capital return or a capital repayment is generally not taxable for the shareholder when paid.

6.2.3.2 Treatment

Capital return implementation is the same across all return type indices.

Shares Price Weight Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Capital return in No adjustment Price decrease No adjustment Divisor decrease Ex-date cash of parent security reflecting the reflecting the repaid opening index capital amount market value decrease

Example 1: Capital return where custodian bank fee is not applicable

Company announces a capital return of USD 50. The ex-date is day . The share closing price on the day is USD 300.

The Corresponding adjustment is calculated using the following formula:

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Terms

Capital return amount per share USD 50

Share closing price USD 300

Adjustments

Adjusted gross price

Example 2: Capital return where custodian bank fees is applicable

Company announces a capital return of USD 50. The ex-date is day . The share closing price on the day is USD 300 and the custodian fee is USD 2.

The Corresponding adjustment is calculated using the following formula:

Terms

Capital return amount per share USD 50

Custodian bank fee USD 2

Share closing price USD 300

Adjustments

Adjusted gross price

6.2.4 Dividend Taxation The applicable withholding tax rates are generally determined by the territory of incorporation of the company and represent non-treat tax rates. Tax rates are updated as and when changes to a territory's withholding tax rate become effective and are reviewed at least on an annual basis. Table 1: Withholding Tax represents the currently implemented tax rates.

Special taxation schemes:

• Australian companies usually provide dividends with different franking credit entitlements that allow shareholders to reduce tax payable. Dividends can be fully franked, partially franked or unfranked. For foreign non-resident investors, withholding tax is applicable to the unfranked portion of a dividend. Consequently, the applicable withholding tax rate would be determined case-by-case based on the franking portion of the announced dividend. • Property income distributions (PIDs) paid by real estate investment trusts (REITS) incorporated in the UK are paid out of the tax-exempt profits, therefore are taxable at the basic income tax rate. The corresponding tax rate can be found in Table 1: Withholding Tax. • Brazilian companies may provide interest on capital, that, from an economic perspective is an equivalent of regular dividend payments. According to the country taxation rules, a withholding

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tax is applicable on such interest payments. The corresponding tax rate can be found in Table 1: Withholding Tax.

6.3 Merger

Merger also refers to:

• Acquisition • Takeover • Tender • Purchase offer

6.3.1 Definition Merger/acquisition generally means that two or more companies merge together to form one larger company. This is usually achieved through a mutual agreement, scheme of arrangement or through a tender offer. In a merger, the merging entities cease to exist, and a new joint organisation or surviving entity is created. Shares of the new entity are distributed to existing shareholders of both original businesses following a merger.

In an acquisition, the acquirer company takes over the controlling majority of the target company's shares. The acquisition could be done via a cash offer, stock swap or a combination of both. Most often, the target company is delisted and ceases to exist with its assets becoming part of the acquiring company.

6.3.2 Treatment The adjustments related to a merger/acquisition event are applied to the index on the effective date. This is the date in which the action is determined to be final or completed. Merger/acquisition transactions are considered 'final' if they have been declared unconditional and have received the approval of all the regulatory agencies with jurisdiction over the transaction. Exchange notifications, expected completion date, prevailing shareholder sentiment, board/director recommendations, and stock price versus offer value are considered when making this determination.

Not all shares of the target company may have been tendered to the acquiring company. When the “squeeze out” level (the minimum percentage of shares which needs to be held by the acquirer in order for the purchase of the remaining shares to be guaranteed) has been reached, the merger will be deemed effective. In such cases, the merger/acquisition event is implemented on a date when it is possible to ascertain, based on market information, that the statutory limit of mandatory tender offer is reached, or on the most reasonable date thereafter.

In respect to the treatment of a merger/ acquisition event, a target security refers to the company that ceases to exist as a result of the merger, whereas the pay-out security refers to an acquirer or to a surviving company.

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If there are more than two companies merging, or more than one target company getting acquired, the corresponding number of events will be created.

For any of the event types described below, the target security is removed from the index composition at the last available market price on the effective date.

Shares Price Weight Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Merger/Acquisition Target security Target security Target security Divisor decrease Effective date in cash removed from the removed from the removed from the reflecting the index index index opening index market value decrease

Merger/Acquisition No adjustment for No adjustment for No adjustment for Divisor decrease Effective date in stock: Only target pay-out security; pay-out security; pay-out security; reflecting the security is an index Target security Target security Target security opening index constituent removed from the removed from the removed from the market value index index index decrease

Merger/Acquisition No adjustment No adjustment No adjustment No adjustment No Adjustment in stock: Only pay- out security is an index constituent

Merger/Acquisition Increase of pay- No adjustment for Pay-out security May be adjusted Effective date in stock: Both out security number pay-out security; WF adjustment in if the event terms target and pay- of shares by the Target security accordance with the result in a slight out securities are number of shares removed from the parent's WF and the change of the index constituents provided to the index pay-out ratio; opening index (Example 1) Target security Target security market value shareholders; removed from the Target security index removed from the index

Example 1: Merger/acquisition in stock - Both target and pay-out securities are index constituents.

The target company is being acquired by pay-out company on the effective date whereby every 2 unit holding of stock will receive 1 share.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

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Terms:

Target number of shares 500m

Pay-out number of shares 100m

Target WF 0.9

Pay-out WF 0.8

Adjustments:

Adjusted pay-out number of shares

Adjusted pay-out weighting factor

6.4 Spin-off

Spin-off also refers to:

• Demerger • Unbundling • Divestiture

6.4.1 Definition A spin-off is the distribution of shares in a wholly owned or a partially owned company to the parent company’s existing shareholders on a pro-rata basis. A new, independent company is formed from an existing division or a subsidiary of the parent company through issuing shares in the new company.

The spun off company takes assets, intellectual property, technology, and/or existing products from the parent organization and forms its own private or publicly listed company.

One of the main reasons for doing this is to improve the value of the company’s shares, especially if one part of the group’s value can be better reflected as an independent operation with a separate share quotation. A company may also conduct a spin-off to be able to focus its resources and better manage the division that has a more long-term potential.

6.4.2 Treatment In respect of treatment of a spin-off event, a parent security refers to the company that spins off a new entity, whereas a pay-out security refers to a spun off company. If there are more than one companies being spun off, the corresponding number of pay-out securities will be created for the event.

The parent security is kept in the index provided it remains listed and continues to trade on an eligible stock exchange. The pay-out security qualifies for inclusion to the index only if the spun-off company is currently trading or is expected to trade on an eligible stock exchange.

If the spun off security is already trading on an eligible stock exchange before the ex-date and is not a part of the index yet, it will be added to the index.

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If a spun off security is not trading before the ex-date, a theoretical open price is estimated to calculate the expected market capitalization of the spun off security and the expected impact on the parent security’s open price. To estimate the theoretical open price, all the publicly available information such as a primary exchange estimate, a company valuation, event announcements, spin-off prospectus or parent’s financial reports are used.

If the spun off security is trading on a conditional basis or with a “when issued” status before the ex- date, the last available “when issued” price will be used for the estimation.

If a spun off security is not trading on the ex-date but is expected to trade on an eligible stock exchange, it will be added to the index and will remain with the market capitalisation calculated based on the theoretical open price until trading in this security commences.

Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Spun off entity is a No adjustment for Price decrease No adjustment for Divisor decrease Ex-date private company, or parent security;Pay- of parent security parent security;Pay- reflecting the a public company out security not reflecting the market out security not opening index trading on a non- added to the index capitalisation drop added to the index market value eligible stock after spinning decrease exchange (Example off a part of a 1) business;Pay-out security not added to the index

Spun off entity No adjustment for Price decrease No adjustment for May be adjusted Ex-date is a new public parent security;Pay- of parent security parent security;Pay- if the event terms company, trading out security added reflecting the market out security added result in a slight on an eligible stock to the index capitalisation drop to the index change of the exchange (Example after spinning opening index 2) off a part of a market value business;Pay-out security added to the index

Spun off entity is No adjustment for Price decrease No adjustment for May be adjusted Ex-date an existing public parent security ; of parent security parent security ; if the event terms company, trading Pay-out security reflecting the market Pay-out security result in a slight on an eligible added to the index capitalisation drop added to the index change of the stock exchange after spinning off a opening index which is not an part of a business; market value index constituent Pay-out security (Example 3) added to the index

Spun off entity is No adjustment for Price decrease No adjustment for May be adjusted Ex-date an existing public parent security; of parent security parent security;Pay- if the event terms result in a slight company, trading Increase of pay- reflecting the market out security WF change of the on an eligible stock out security number capitalisation drop adjustment in opening index exchange which is of shares by after spinning accordance with the market value an index constituent the number of off a part of a parent's WF and the (Example 4) transferred shares business;No pay-out ratio adjustment for Pay- out security

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Example 1: Spun off entity is a private company, or a public company trading on a not eligible stock exchange

The parent company is spinning off a new pay-out company on the ex-date whereby every 2 of stock will receive 1 share. The stock is not eligible for index inclusion.

Corresponding adjustment is calculated using the following formula:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent closing price USD 300

Pay-out theoretical opening price USD 50

Adjustments:

Adjusted parent price

Example 2: Spun off entity is a new public company, trading on an eligible stock exchange

The parent company is spinning off a new pay-out company on the ex-date whereby every 2 unit holding of stock will receive 1 share. The stock is eligible for index inclusion.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent share price USD 300

Parent number of shares 500m

Pay-out theoretical opening price USD 50

Adjustments:

Adjusted parent price

Adjusted pay-out number of shares

Pay-out security added to the index.

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Example 3: Spun off entity is an existing public company, trading on an eligible stock exchange which is not an index constituent

The parent company is spinning off a trading pay-out company on the ex-date whereby every 2 unit holding of stock will receive 1 share. The stock is eligible for index inclusion.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent share price USD 300

Parent number of shares 500m

Pay-out share price USD 50

Adjustments:

Adjusted parent price

Adjusted pay-out number of shares

Pay-out security added to the index.

Example 4: Spun off entity is an existing public company, trading on an eligible stock exchange which is an index constituent

The parent company is spinning off a trading pay-out company on the ex-date whereby every 2 unit holding of stock will receive 1 share.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent share price USD 300

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Terms:

Parent number of shares 500m

Pay-out share price USD 50

Pay-out number of shares 100m

Parent Weighting Factor 0.9

Pay-out Weighting Factor 0.8

Adjustments:

Adjusted parent price

Adjusted pay-out number of shares

Adjusted pay-out weighting factor

6.5 Exchange

6.5.1 Definition An exchange offer is an option to exchange the current holding of shares for a fixed number of a different series or for securities of another company.

6.5.2 Treatment In respect of treatment of an exchange event, a parent security refers to the security that is getting exchanged, whereby a pay-out security refers to the successor security.

A parent security will be removed from the index as it is getting exchanged for another security. If both the parent and the pay-out securities are index constituents, pay-out security will be adjusted according to the exchange terms.

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Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Exchange offer Parent security No adjustment for Parent security May be adjusted Effective date for another index removed from the pay-out security. removed from the if the event terms constituent index; index; result in a slight change of the Increase of pay- Pay-out security opening index out security number WF adjustment in market value of shares by the accordance with the number of shares parent's WF and the provided to the pay-out ratio Parent security shareholders;

Exchange offer for a Parent security Parent security Parent security Divisor decrease Effective date non-constituent removed from the removed from the removed from the reflecting the index; index; index; opening index market value No adjustment for No adjustment for No adjustment for decrease pay-out security. pay-out security. pay-out security;

Example 1: Exchange offer for another index constituent

The Parent security is getting exchanged for pay-out security on the ex-date whereby every 2 unit holding of stock will receive 1 stock.

The corresponding adjustments are calculated using the following formulas:

Terms:

pay-out ratio 1 pay-out share for 2 parent shares

Parent number of shares 500m

Pay-out number of shares 100m

Parent weighting factor 0.9

Pay-out weighting factor 0.8

Adjustments:

Adjusted pay-out number of shares

Adjusted pay-out weighting factor

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6.6 Conversion

6.6.1 Definition Share conversion is the exchange of one share class into another share class of the same company for example preferred stock conversion into a common stock.

6.6.2 Treatment In respect to the treatment of a conversion event, a parent security refers to a converted security, whereas a pay-out security refers to successor security. If the parent security is converted into more than one security, the corresponding number of pay-out securities will be created for the event.

A parent security will be removed from the index as it is being converted to another security or share class. The parent security is usually replaced by the pay-out security if the latter is eligible for inclusion to the index and is not already an index constituent, at the time of implementation. If both the parent and the pay-out securities are index constituents, the pay-out security will be adjusted according to the conversion terms.

Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Conversion into Parent security Parent security Parent security May be adjusted Effective date another index removed from the removed from the removed from the if the event terms constituent index; index; index; result in a slight change of the (Example 1) Increase of pay- No adjustment for Pay-out security opening index out security number pay-out security WF adjustment in market value of shares by the accordance with the number of shares parent's WF and the provided to the pay-out ratio Parent security shareholders

Conversion Parent security Parent security Parent security May be adjusted Effective date into an eligible removed from the removed from the removed from the if the event terms non-constituent index; index; index; result in a slight change of the (Example 2) Pay-out security Pay-out security Pay-out security opening index added to the index added to the index added to the index market value

Conversion into Parent security Parent security Parent security Divisor decrease Effective date an ineligible non- removed from the removed from the removed from the reflecting the constituent index; index; index; opening index market value Pay-out security not Pay-out security not Pay-out security not decrease added to the index added to the index added to the index

Example 1: Conversion into another index constituent.

The parent security is getting converted to pay-out security on the ex-date whereby every 2 unit holding of stock will receive 1 stock.

T180614 Markit Index Standard Treatment | CA003

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent number of shares 500m

pay-out number of shares 100m

Parent weighting factor 0.9

Pay-out weighting factor 0.8

Adjustments:

Adjusted pay-out number of shares

Adjusted pay-out weighting factor

Example 2: Conversion into an eligible non-constituent

The parent security is getting converted into pay-out security on the ex-date whereby every 2 unit holding of stock will receive 1 stock.

Corresponding adjustment is calculated using the following formula:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent number of shares 500m

Adjustments:

Adjusted pay-out number of shares

Parent security removed from the index. Pay-out security added to the index.

T180614 Markit Index Standard Treatment | CA003

6.7 Stock Dividend

Stock Dividend also refers to:

• Scrip Issue • Dividend in specie • Bonus issue • Capitalization issue

6.7.1 Definition A stock dividend or scrip issue is a distribution of shares issued proportionally according to each shareholder’s stake in the company. A company may decide to distribute further shares as an alternative to increase the dividend pay-out.

In some instances, the stock dividend can be optional, whereby the shareholders may choose to receive shares instead of a cash payment. In this case, the index assumes that the shares will be issued for cash. The implementation of such events is based on the assumption that shareholders will prefer the cash option, therefore the treatment according to regular cash dividend event (Section 6.2.1 — Regular Cash Dividend) is followed.

6.7.2 Treatment The parent security is kept in the index provided it remains listed and continues to trade on an eligible stock exchange. If stock dividends in more than one security are announced, the corresponding number of pay-out securities will be created for the event. If scrip issue is in a different stock, the pay- out security qualifies for inclusion to the index only if it is trading on an eligible stock exchange.

T180614 Markit Index Standard Treatment | CA003

Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Stock dividend in Increase of parent Proportional price No adjustment No adjustment Ex-date the same security security number decrease of parent (Example 1) of shares by security reflecting the number of the increase in transferred shares number of shares

Stock dividend in Increase of pay- Price decrease Pay-out security May be adjusted Ex-date a different index out security number of parent security WF adjustment in if the event terms constituent of shares by reflecting the new accordance with the result in a slight (Example 2) the number of shares issue; parent's WF and the change of the opening index transferred shares; No adjustment for pay-out ratio; market value No adjustment for pay-out security No adjustment for parent security; pay-out security

Stock dividend in No adjustment for Price decrease No adjustment for May be adjusted Ex-date a different listed parent security; of parent security parent security; if the event terms result in a slight security, trading Pay-out security reflecting the market Pay-out security change of the on an eligible added to the index capitalisation drop; added to the index opening index stock exchange Pay-out security market value which is not an added to the index index constituent (Example 3)

Stock dividend in No adjustment for Price decrease No adjustment for Divisor decrease Ex-date a different unlisted parent security; of parent security parent security; reflecting the security, or in a Pay-out security not reflecting the market Pay-out security not opening index security trading on added to the index capitalisation drop; added to the index market value a non- eligible stock Pay-out security not decrease exchange (Example added to the index 4)

Example 1: Stock dividend in the same security

The parent company announces to pay a stock dividend where the ex-date is day whereby every 2 units held in stock will receive one additional stock .

Corresponding adjustments are calculated using the following formulas:

T180614 Markit Index Standard Treatment | CA003

Terms:

Pay-out Ratio 1 additional Parent share for 2 parent shares holding

Parent share price USD 300

Parent number of shares 500m

Adjustments:

Adjusted parent price

Adjusted parent number of shares

Example 2: Stock dividend in a different listed security, trading on an eligible stock exchange which is an index constituent

The parent company announces to pay a stock dividend in a pay-out share where the ex-date is day whereby every 2 units held in stock will receive one stock.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent share price USD 300

Parent number of shares 500m

Pay-out share price USD 50

Pay-out number of shares 100m

Parent weighting factor 0.9

Pay-out weighting factor 0.8

Adjustments:

Adjusted parent price

Adjusted pay-out number of shares

Adjusted pay-out weighting factor

Example 3: Stock dividend in a different listed security, trading on an eligible stock exchange which is not an index constituent

T180614 Markit Index Standard Treatment | CA003

The parent company announces to pay a stock dividend in a pay-out share where the ex-date is day whereby every 2 units held in stock will receive one stock.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out Ratio 1 pay-out Share for 2 parent shares

Parent share price USD 300

Parent number of shares 500m

Pay-out share price USD 50

Adjustments:

Adjusted parent price

Adjusted pay-out number of shares

Pay-out security added to the index.

Example 4: Stock dividend in a different unlisted security, or in a security trading on a non-eligible stock exchange

The parent company announces to pay a stock dividend in a pay-out share on the ex-date whereby every 2 units held in stock will receive one stock. The stock is not eligible for index inclusion.

Corresponding adjustment is calculated using the following formula:

Terms:

Pay-out ratio 1 pay-out share for 2 parent shares

Parent closing price USD 300

Pay-out theoretical opening price USD 50

Adjustments:

Adjusted parent price

Pay-out security not added to the index.

T180614 Markit Index Standard Treatment | CA003

6.8 Stock Split and Reverse Stock Split

Stock split and r everse stock split refer to:

• Subdivision (split) • Consolidation (reverse split)

6.8.1 Definition A stock split is an increase of number of outstanding shares by a multiple, where existing shareholders receive new shares proportionally to the amount held.

A reverse stock split is a reduction of number of outstanding shares by a multiple, where existing shareholders outstanding shares will decrease proportionately.

As a result of a split or reverse stock split the stake of each shareholder in the company will remain constant.

6.8.2 Treatment As there exist no additional capital flows related to the event, the event is market capitalization neutral. Therefore the share price will be adjusted by the same multiple as the number of shares but in the opposite direction.

Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Stock split (example Increase of parent Proportional price No adjustment No adjustment Ex-date 1) security number of decrease of parent shares by the split security reflecting ratio the increase in number of shares

Reverse stock split Decrease of parent Proportional price No adjustment No adjustment Ex-date (example 2) security number increase of parent of shares by the security reflecting consolidation ratio the decrease in number of shares

Example 1: Stock split

The parent company announces a stock split event on the ex-date is day whereby every 1 unit holding of stock splits into 5 stocks .

Corresponding adjustments are calculated using the following formulas:

T180614 Markit Index Standard Treatment | CA003

Terms:

Pay-out ratio 5 parent shares for 1 parent share holding

Parent share price USD 300

Parent number of shares 500m

Adjustments:

Adjusted parent price

Adjusted parent number of shares

Example 2: Reverse stock split

The parent company announces a reverse stock split event on the ex-date is day whereby every 5 units holding of stock consolidate to 1 stock .

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out Ratio 1 parent share for 5 parent shares holding

Parent share price USD 300

Parent number of shares 500m

Adjustments:

Adjusted parent price

Adjusted parent number of shares

6.9 Rights Issue

6.9.1 Definition A rights issue is an entitlement issued to existing shareholders to purchase additional shares at a subscription price in proportion to their existing holding.

T180614 Markit Index Standard Treatment | CA003

Rights issues can be renounceable (transferable) or non-renounceable (non-transferable). Renounceable rights can be freely traded on the open market, whereas non-renounceable cannot be traded because their transfer to another owner is restricted.

A rights issue is defined as highly dilutive rights issue when it favors a strategic shareholder in such a way that minority shareholder stakes are likely to be diluted. An example would be a rights issue with a large ratio and a rights issue price at or close to the market price.

6.9.2 Treatment The decisive factor to determine if the rights issue shall be implemented or not, is if the rights issue is ‘in the money’. If the offered subscription price is at a discount to the close market price of the stock prior to the ex-date of the rights issue, the rights issue is considered to be ‘in the money’ and is implemented. On the other hand, if the subscription price exceeds the close market price, the issue is ‘out of the money’ and is not be accounted for in the index calculations.

If a security is suspended on the rights issue ex-date, the rights issue will usually be implemented on the first trading date following the suspension and the subscription price will be compared with the last available close price to determine whether the rights are "in the money". A rights issue may also be implemented on the ex-date during suspension, in which case the security will remain in the index and will be priced at the theoretical opening price between the ex-date of the rights issue and the first trading date.

Rights issues may be effective on the same date as a cash dividend distribution. If the cash dividend and rights issue events occur on the same ex-date, the rights issue will be implemented following the cash dividend event. To define if the rights issue is ‘in the money’ or not, the ex-dividend close price is used. If the company in question explicitly states that the dividend distribution is effective after the rights issue, it is assumed that the issued rights are entitled to forthcoming dividends paid by the company.

T180614 Markit Index Standard Treatment | CA003

Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

‘Out of the money' No adjustment No adjustment No adjustment No adjustment No Adjustment rights issue

‘In the money' rights Increase of parent Decrease of parent No adjustment Divisor increase Ex-date issue in the same security number security price reflecting the security (example 1) of shares by the reflecting the opening index number of offered difference between market value rights the subscription increase price, the previous close price and the subscription ratio

‘In the money' rights No adjustment for Decrease of parent No adjustment for Divisor increase Ex-date issue in another parent security; security price parent security; reflecting the opening index index constituent Increase of Pay- reflecting the Pay-out security market value (example 2) out security number difference between WF adjustment in increase of shares by the the subscription accordance with the number of offered price and the Parent's WF and the rights previous close price pay-out ratio of Pay-out security; No adjustment for pay-out security

‘In the money' rights No adjustment for Decrease of parent No adjustment Divisor decrease Ex-date issue in a non- parent security; security price reflecting the opening index constituent No adjustment for reflecting the market value (example 3) pay-out security difference between the subscription decrease price and the previous close price of Pay-out security; No adjustment for pay-out security

Example 1: ‘In the money' rights issue in the same security

The parent company offers an 'in the money' rights issue on the ex-date is day whereby shareholders of stock can buy 1 additional stock per every 5 units held for the subscription price USD 270.

Corresponding adjustments are calculated using the following formulas:

Terms:

Pay-out ratio 1 parent share for 5 parent shares holding

Parent share price USD 300

T180614 Markit Index Standard Treatment | CA003

Terms:

Parent share subscription price USD 270

Parent number of shares 500m

Adjustments:

Adjusted parent price

Adjusted parent number of shares

Example 2: ‘In the money' rights issue in another index constituent

The parent company offers an 'in the money' rights issue in the share on the ex-date is day whereby shareholders of stock can buy 1 stock per every 5 units held for the subscription price USD 46.

Corresponding adjustments are calculated using the following formulas:

Numeric case:

Terms:

Pay-out ratio 1 pay-out share for 5 parent shares

Parent share price USD 300

Parent number of shares 500m

Pay-out share price USD 50

Pay-out subscription price USD 46

Pay-out number of shares 100m

Pay-out weighting factor 0.8

Parent weighting factor 0.9

Adjustments:

Adjusted parent price

Adjusted pay-out number of shares

Adjusted pay-out weighting factor

Example 3: ‘In the money' rights issue in a non-constituent

T180614 Markit Index Standard Treatment | CA003

The parent company offers an 'in the money' rights issue in the share on the ex-date is day whereby shareholders of stock can buy 1 stock per every 5 units held for the subscription price USD 46.

Corresponding adjustment is calculated using the following formula:

Terms:

Pay-out ratio 1 pay-out share for 5 parent shares

Parent share price USD 300

Pay-out share price USD 50

Pay-out subscription price USD 46

Adjustments:

Adjusted parent price

6.10 Suspension

6.10.1 Definition A suspension event takes place when the trading of a security is suspended on an eligible stock exchange. These reasons for suspension may include pending company announcements that may have a material impact on the company's valuation on the markets; corporate actions including (but not limited to) an acquisition or restructuring; or regulatory, oversight or investigative actions by the relevant stock exchange, government or law enforcement authorities.

6.10.2 Treatment Suspended securities remain in the index at the last trading price and are monitored on a continuous basis for possible removal. In making this determination the stated reasons for the suspension are considered.

If there is a corporate event occurring during the suspension period, it is usually implemented on the first trading date following the suspension period. A corporate event may also be implemented on the ex-date during suspension, in which case the security will remain in the index and will be priced at the theoretical opening price between the ex-date of the corporate action and the first subsequent trading date.

T180614 Markit Index Standard Treatment | CA003

6.11 Delisting

Delisting also refers to:

• Deletion • Insolvency • Liquidation

6.11.1 Definition Delisting happens when a security ceases public trading on an eligible stock exchange.

Delisting may occur for several reasons, including bankruptcy (insolvency, liquidation or a filing for bankruptcy protection), change in listing, M&A events, going private or failure to disclose information according to the rules set by the exchange or relevant regulatory authorities.

In a bankruptcy, a company legally declares its inability to pay its creditors. Creditors may file a bankruptcy petition against a debtor in an effort to recoup a portion of what they are owed. However, in the majority of cases, bankruptcy is initiated by the debtor. After undergoing reorganization, a company may be liquidated.

6.11.2 Treatment If a security ceases to trade publicly or continues trading only on an ineligible stock exchange, it is removed from the index at its last closing price on the delisting effective date. The company may be removed from the index with no value in situations such as a bankruptcy where circumstances surrounding the delisting suggest a significant decline in the security’s market value.

If a security listing changes to another eligible stock exchange it will be considered as an eligible constituent and remain in the index. The price and reference data source will be changed to the new stock exchange.

T180614 Markit Index Standard Treatment | CA003

Shares Price Weighting Factor Divisor Timing of Event Type Adjustment Adjustment Adjustment Adjustment Application

Security ceases Parent security Parent security Parent security Divisor decrease Effective date public trading removed from the removed from the removed from the reflecting the index index at the last index opening index available market market value price. decrease

Security listing Parent security Parent security Parent security Divisor decrease Effective date changes to an removed from the removed from the removed from the reflecting the ineligible stock index index at the last index opening index exchange available price from market value the eligible stock decrease exchange.

Security listing No adjustment No adjustment No adjustment No adjustment No adjustment changes to another eligible stock exchange

6.12 Write-Up/Off of Capital

6.12.1 Definition Write-up of capital is a conversion of existing shares in issue one-for-one into the same shares with an increased nominal value. Write-off of capital is a conversion of existing shares in issue one for one into the same shares with a reduced nominal value.

Write-up/off of capital generally occurs to restate a book value to a fair market value mostly during M&A deals.

6.12.2 Treatment No special index treatment is required for this event.

6.13 Redenomination

6.13.1 Definition Redenomination is a change of the nominal value of existing shares in issue due to the change of currency. The amount is converted using a set rate.

6.13.2 Treatment No treatment is required for this event.

T180614 Markit Index Standard Treatment | CA003

A Withholding Tax (last updated in April, 2020)

Table 1: Withholding Tax

Code Territory Withholding Tax Rate

AD Andorra 0%

AE United Arab Emirates 0%

AG Antigua and Barbuda 25%

AI Anguilla 0%

AL Albania 15%

AM Armenia 10%

AN Netherlands Antilles 0%

AO Angola 10%

AR Argentina 7%

AT Austria 28%

AU Australia 30%

AW Aruba 10%

AZ Azerbaijan 10%

BA Bosnia and Herzegovina 5%

BB Barbados 15%

BD Bangladesh 20%

BE Belgium 30%

BF Burkina Faso 13%

BG Bulgaria 5%

BH Bahrain 0%

BI Burundi 15%

BJ Benin 15%

BM Bermuda 0%

BN Brunei 0%

BO Bolivia 13%

BR Brazil 0%

BR Brazil (Interest on Capital) 15%

BS Bahamas 0%

BW Botswana 8%

BY Belarus 12%

BZ Belize 0%

CA Canada 25%

T180614 Markit Index Standard Treatment | CA003

Code Territory Withholding Tax Rate

CD Congo, Democratic Republic of the 20%

CG Congo, Republic of the 15%

CH Switzerland 35%

CI Cote d'Ivoire 15%

CK Cook Islands 15%

CL Chile 35%

CM Cameroon 17%

CN Mainland China 10%

CO Colombia 35%

CR Costa Rica 15%

CV Cape Verde 10%

CW Curacao 0%

CY Cyprus 0%

CZ Czechia 35%

DE Germany 26%

DJ Djibouti 0%

DK Denmark 27%

DM Dominica 15%

DO Dominican Republic 10%

DZ Algeria 15%

EC Ecuador 0%

EE Estonia 0%

EG Egypt 10%

ES Spain 19%

ET Ethiopia 10%

FI Finland 30%

FJ Fiji 0%

FK Falkland Islands (Malvinas) 0%

FO Faroe Islands 18%

FR France 28%

GA Gabon 20%

GB United Kingdom 0%

GB UK REITs 20%

GD Grenada 15%

GE Georgia 5%

GG Guernsey 0%

T180614 Markit Index Standard Treatment | CA003

Code Territory Withholding Tax Rate

GG Guernsey REITs 20%

GH Ghana 8%

GI Gibraltar 0%

GL Greenland 44%

GM Gambia, The 15%

GN Guinea 10%

GQ Equatorial Guinea 25%

GR Greece 10%

GT Guatemala 5%

GU Guam 30%

GY Guyana 20%

HK Hong Kong SAR 0%

HN Honduras 10%

HR Croatia 12%

HU Hungary 0%

ID Indonesia 20%

IE Ireland REITs 20%

IE Ireland 25%

IL Israel 25%

IM Isle of Man 0%

IM Isle of Man REITs 20%

IN India 0%

IQ Iraq 0%

IR Iran 8%

IS Iceland 20%

IT Italy 26%

JE Jersey 0%

JM Jamaica 33%

JO Jordan 0%

JP Japan 15%

KE Kenya 10%

KG Kyrgyzstan 10%

KH Cambodia 14%

KN St Kitts and Nevis 15%

KR South Korea 22%

KW Kuwait 0%

T180614 Markit Index Standard Treatment | CA003

Code Territory Withholding Tax Rate

KY Cayman Islands 0%

KZ Kazakhstan 15%

LA Laos 10%

LB Lebanon 10%

LC St Lucia 0%

LI Liechtenstein 0%

LK Sri Lanka 14%

LR Liberia 15%

LS Lesotho 25%

LT Lithuania 15%

LU Luxembourg 15%

LV Latvia 0%

LY Libya 0%

MA Morocco 15%

MC Monaco 0%

MD Moldova 6%

ME Montenegro 9%

MG Madagascar 0%

MH Marshall Islands 0%

MK Macedonia, North 10%

ML Mali 10%

MM Myanmar 0%

MN Mongolia 20%

MO Macao SAR 0%

MR Mauritania 10%

MT Malta 0%

MU Mauritius 0%

MV Maldives 0%

MW Malawi 10%

MX Mexico 10%

MY Malaysia 0%

MZ Mozambique 20%

NA Namibia 25%

NE Niger 10%

NG Nigeria 10%

NI Nicaragua 15%

T180614 Markit Index Standard Treatment | CA003

Code Territory Withholding Tax Rate

NL Netherlands 15%

NO Norway 25%

NR Nauru 0%

NZ New Zealand 30%

OM Oman 10%

PA Panama 10%

PE Peru 5%

PG Papua New Guinea 15%

PH Philippines 30%

PK Pakistan 20%

PL Poland 19%

PN Pitcairn 0%

PR Puerto Rico 10%

PS Palestinian Territory 0%

PT Portugal 25%

PW Palau 0%

PY Paraguay 15%

QA Qatar 0%

RO Romania 5%

RS Serbia 20%

RU Russia 15%

RW Rwanda 15%

SA Saudi Arabia 5%

SB Solomon Islands 30%

SC Seychelles 15%

SD Sudan 20%

SE Sweden 30%

SG Singapore 0%

SI Slovenia 15%

SK Slovakia 35%

SL Sierra Leone 10%

SN Senegal 10%

SO Somalia 0%

SV El Salvador 5%

SX St Maarten 0%

SY Syria 0%

T180614 Markit Index Standard Treatment | CA003

Code Territory Withholding Tax Rate

SZ Eswatini 15%

TC Turks and Caicos Islands 0%

TD Chad 20%

TG Togo 13%

TH Thailand 10%

TJ Tajikistan 12%

TL Timor-Leste 10%

TM Turkmenistan 15%

TN Tunisia 10%

TR Turkey 15%

TT Trinidad and Tobago 10%

TW Taiwan 21%

TZ Tanzania 5%

UA Ukraine 15%

UG Uganda 15%

US United States 30%

UY Uruguay 7%

UZ Uzbekistan 10%

VC St Vincent and the Grenadines 0%

VE Venezuela 34%

VG British Virgin Islands 0%

VI US Virgin Islands 10%

VN Vietnam 0%

VU Vanuatu 0%

YE Yemen 10%

ZA South Africa 20%

ZM Zambia 15%

ZW Zimbabwe 15%

T180614 Markit Index Standard Treatment | CA003

B Overall Eligible Exchanges

Market Operating MIC Exchange Name Trading days

Argentina XBUE Bolsa De Comercio De Buenos Monday to Friday Aires

Australia XASX ASX – All Markets Monday to Friday

Austria XWBO Wiener Boerse AG Monday to Friday

Bahrain XBAH Bahrain Bourse Sunday to Thursday

Bangladesh XDHA Dhaka Stock Exchange Ltd Sunday to Thursday

Belgium XBRU Euronext – Euronext Brussels Monday to Friday

Botswana XBOT Botswana Stock Exchange Monday to Friday

Brazil BVMF B3 Brasil Bolsa Balcao Monday to Friday

Bulgaria XBUL Bulgarian Stock Exchange Monday to Friday

Canada XTSX TSX Venture Exchange Monday to Friday

XTSE Toronto Stock Exchange Monday to Friday

Chile XSGO Santiago Stock Exchange Monday to Friday

China, Mainland XSHG Shanghai Stock Exchange Monday to Friday

XSHE Shenzhen Stock Exchange Monday to Friday

Colombia XBOG Bolsa De Valores De Colombia Monday to Friday

Croatia XZAG Zagreb Stock Exchange Monday to Friday

Cyprus XCYS Cyprus Stock Exchange Monday to Friday

Czech Republic XPRA Prague Stock Exchange Monday to Friday

Denmark XCSE Nasdaq Copenhagen A/S Monday to Friday

Egypt XCAI Egyptian Exchange Sunday to Thursday

Estonia XTAL Nasdaq Tallinn AS Monday to Friday

Finland XHEL Nasdaq Helsinki Ltd Monday to Friday

France XPAR Euronext – Euronext Paris Monday to Friday

Germany XETR Xetra Monday to Friday

Greece ASEX Athens Stock Exchange Monday to Friday

Hong Kong, SAR XHKG Hong Kong Exchanges And Monday to Friday Clearing Ltd

Hungary XBUD Budapest Stock Exchange Monday to Friday

India XBOM BSE Ltd Monday to Friday

XNSE National Stock Exchange Of Monday to Friday India

Indonesia XIDX Indonesia Stock Exchange Monday to Friday

Ireland XDUB Irish Stock Exchange Monday to Friday

T180614 Markit Index Standard Treatment | CA003

Market Operating MIC Exchange Name Trading days

Israel XTAE Tel Aviv Stock Exchange Sunday to Thursday

Italy XMIL MTS Italia Monday to Friday

Japan XNGO Nagoya Stock Exchange Monday to Friday

XJPX Japan Exchange Group Monday to Friday

XSAP Sapporo Securities Exchange Monday to Friday

Jordan XAMM Amman Stock Exchange Sunday to Thursday

Kenya XNAI Nairobi Stock Exchange Monday to Friday

Kuwait XKUW Kuwait Stock Exchange Sunday to Thursday

Latvia XRIS Nasdaq Riga Monday to Friday

Lebanon XBEY Beirut Stock Exchange Monday to Friday

Lithuania XLIT AB Nasdaq Vilnius Monday to Friday

Luxembourg XLUX Luxembourg Stock Exchange Monday to Friday

Malaysia XKLS Bursa Malaysia Monday to Friday

Malta XMAL Malta Stock Exchange Monday to Friday

Mexico XMEX Bolsa Mexicana De Valores Monday to Friday

Morocco XCAS Casablanca Stock Exchange Monday to Friday

Netherlands XAMS Euronext – Euronext Monday to Friday Amsterdam

New Zealand XNZE New Zealand Exchange Ltd Monday to Friday

Nigeria XNSA The Nigerian Stock Exchange Monday to Friday

Norway XOSL Oslo Bors ASA Monday to Friday

Oman XMUS Muscat Securities Market Sunday to Thursday

Pakistan XKAR The Pakistan Stock Exchange Monday to Friday Limited

Peru XLIM Bolsa De Valores De Lima Monday to Friday

Philippines XPHS Philippine Stock Exchange, Monday to Friday Inc.

Poland XWAR Warsaw Stock Exchange Monday to Friday

Portugal XLIS Euronext – Euronext Lisbon Monday to Friday

Qatar DSMD Qatar Exchange Sunday to Thursday

Romania XBSE Bucharest Stock Exchange Monday to Friday

Russia MISX Moscow Exchange Monday to Friday

Saudi Arabia XSAU Saudi Stock Exchange Sunday to Thursday

Singapore XSES Singapore Exchange Monday to Friday

Slovakia XBRA Bratislava Stock Exchange Monday to Friday

Slovenia XLJU Ljubljana Stock Exchange Monday to Friday

South Africa XJSE Johannesburg Stock Exchange Monday to Friday

T180614 Markit Index Standard Treatment | CA003

Market Operating MIC Exchange Name Trading days

South Korea XKRX Korea Exchange Monday to Friday

Spain BMEX BME – Bolsas Y Mercados Monday to Friday Espanoles

Sri Lanka XCOL Colombo Stock Exchange Monday to Friday

Sweden XSTO Nasdaq Stockholm AB Monday to Friday

Switzerland XSWX Six Swiss Exchange Monday to Friday

Taiwan XTAI Taiwan Stock Exchange Monday to Friday

ROCO Taipei Exchange Monday to Friday

Thailand XBKK Stock Exchange Of Thailand Monday to Friday

Tunisia XTUN Bourse De Tunis Monday to Friday

Turkey XIST Borsa Istanbul Monday to Friday

U.A.E. DIFX Nasdaq Dubai Sunday to Thursday

XDFM Dubai Financial Market Sunday to Thursday

XADS Abu Dhabi Securities Sunday to Thursday Exchange

Ukraine UKEX Ukrainian Exchange Monday to Friday

PFTS Ukraine Stock Exchange Monday to Friday

United Kingdom XLON London Stock Exchange Monday to Friday

USA XNYS New York Stock Exchange, Inc. Monday to Friday

XNAS Nasdaq Monday to Friday

Vietnam HSTC Hanoi Stock Exchange Monday to Friday

XSTC Ho Chi Minh Stock Exchange Monday to Friday

(last updated in April 2021)

T180614 Content modified: 2021-05-07T10:44:14.000+02:00

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