S&P Dow Jones Indices untook a market consultation on potential changes to the S&P US Indices and Dow Jones US Total Stock Market Indices methodologies related to MegaCap companies.
The consultation was triggered by the SpaceX IPO and whether to include it on indicies when the company listed.
"Market consultations are the primary mechanism through which our Index Committees engage with market participants and other stakeholders to seek feedback on potential methodology changes," S&P says.
It has annouced that following these consultations "no changes will be made to the eligibility criteria for the S&P 500, S&P MidCap 400, or S&P SmallCap 600."
Under its rules there are financial viability screens, seasoning period, and minimum investable weight factor (IWF) for MegaCap companies.
Companies have to be profitable, have to be listed for a year before they can be included in indicies and must meet free-float requirements which are related to the percentage of a company's shares that are tradable.
SpaceX currently fails all these requirements.
"S&P DJI determined that exceptions to these requirements should not be granted solely based on market capitalisation.
"The decision not to adopt the proposed exceptions preserves core index principles by maintaining consistent application of these key requirements.
"With respect to the S&P Total Market Index and Dow Jones US Stock Market Index families which already include a fast-track entry point for IPOs, the Index Committee has decided to modify the IWF requirements for IPOs that meet all other applicable fast track criteria for those indices," S&P says in a statement.
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