Nasdaq paves the way for SpaceX and OpenAI to quickly join a premier index after IPOs

By William Gavin

A new 'fast entry' rule would make it far easier for newly minted megacap stocks to join the Nasdaq-100 soon after going public

SpaceX's initial public offering could be the largest in history.

Nasdaq has approved a series of new rules, including a "fast entry" rule, designed to make it easier for newly listed large companies to join an elite index.

The move comes as a slew of companies prepare for major initial public offerings that could take place as soon as this year. Elon Musk's SpaceX is expected to soon file confidentially with regulators and go public in June, while artificial-intelligence labs OpenAI and Anthropic are reportedly targeting fourth-quarter IPOs.

Representatives of OpenAI, Anthropic and SpaceX did not immediately respond to MarketWatch requests for comment.

Companies typically have to wait months after going public to be included in major indexes, such as the S&P 500 SPX or Nasdaq-100 NDX, which can give them greater access to institutional investors and which several popular ETFs QQQ QQQM track. SpaceX, however, has made early inclusion on the Nasdaq-100 a necessary condition for it to list on the technology-heavy exchange, according to Reuters.

The fast-entry rule would shorten the time it takes for a newly public company to make the Nasdaq-100 roster to less than a month. A company could be ranked and evaluated after seven trading days and added to the index after 15 trading days.

Alex Matturri, former CEO of S&P Dow Jones Indices, said last month that it was inappropriate for an index provider to change its methodology regarding index wait times in order to entice a company to list on its parent exchange. All Nasdaq-100 companies must be listed on the Nasdaq, a rule Matturri called "questionable" and potentially anticompetitive.

"While having SpaceX listed would bring substantial value to an exchange, this alone should not justify altering the method used to determine index inclusion," Matturri wrote in a LinkedIn post.

SpaceX's IPO could be the largest in history. The rocket and satellite company is reportedly expected to seek to raise $75 billion at a $1.75 trillion valuation, which would instantly make it one of the biggest U.S. companies by market capitalization. Saudi Aramco (SA:2223) raised $29.4 billion in its 2019 public debut, which is considered the largest-ever IPO by cash raised.

OpenAI recently said it was worth $730 billion after raising cash from investors including Amazon (AMZN). Anthropic in February said it was valued at $380 billion after a fundraising round led by GIC and Coatue, more than double its prior valuation.

See: SpaceX may soon file for an IPO. Why EchoStar and other space stocks are rising.

"It's common practice for index providers to regularly review methodologies to ensure they evolve alongside the markets," a Nasdaq spokesperson said in a statement, which added that the updated rules are meant to ensure the Nasdaq-100 "remains timely and representative" of the market, and to allow passive managers to easily replicate the index.

Industry professionals, such as asset managers, were "mostly supportive" of the fast-entry proposed timing, Nasdaq said in a posted letter, citing responses to its request for public feedback.

The new rules are set to come into effect on May 1.

Nasdaq said updates aren't expected to impact constituent or weighting changes until the next index rebalancing, scheduled for June 22.

FTSE Russell, a London Stock Exchange Group (UK:LSEG) subsidiary, is exploring a fast-entry rule to expedite the inclusion of SpaceX, OpenAI and Anthropic in its indexes.

S&P Dow Jones Indices is also considering a rule that could fast-track SpaceX's entry, Bloomberg News reported. In a statement, the firm said it does not comment on speculation, but it noted that any material changes to its methodology would require public consultation.

See: 'Do you believe in Elon?': Musk tests Tesla investors' faith with an expensive chip-making plan

-William Gavin

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03-30-26 1518ET