The Russian Trading System Index or the RTSI, comprises of 50 of the largest stocks (both common and preferred) capturing 85% of the total market capitalization of the Russian Trading System exchange. It is a capitalization weighted index with a restrictive cap of 15% on all the stocks. The index is rebalanced and the constituents are checked on a quarterly basis.
The index was first calculated on 1st September, 1995 with a base value of 100. The Russian Trading system works with Standard and Poor's since 2006 to calculate the RTSI. The RTSI is one of the few indices which, outside the US, is calculated in USD. The Russian Ruble (RUB) index is based on the USD one.
The RTSI is a restricted market cap index where the weight restriction is maintained at 15% of an individual stock. The index is calculated with the
where the adjusting coefficient value (Zn) is 1.4026 as a 13th September 2008.
The Market Capitalization is calculated by the RTS as:
The Free float Adjustment factor represents the proportion of shares that is free floated as a percentage of issued shares and then its rounded up to the nearest multiple of 5% for calculation purposes. To find the free-float capitalization of a company, first find its market cap (number of outstanding shares x share price) then multiply its free-float factor. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders.
For the stocks to be eligible for the RTS Index, they need to satisfy the following criteria:
The list of companies on the RTSI as of September 2008: