What is Nasdaq's proposed "Fast Entry" rule?

Nasdaq's proposed "Fast Entry" rule aims to speed up the inclusion of large, newly listed companies into its benchmark index, allowing them to join faster than under current standard procedures.

Which companies would be eligible for Nasdaq's "Fast Entry" rule?

Newly Nasdaq-listed companies whose market capitalization ranks among the top 40 current index constituents would be eligible for accelerated inclusion under the "Fast Entry" proposal.

When might Nasdaq's "Fast Entry" rule become significant?

The proposal is expected to be significant by 2026, especially with the potential for technology giants leveraging artificial intelligence to aim for high valuations.

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Nasdaq Fast Entry: Big IPOs join index sooner

4 Feb

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Summary

Nasdaq proposes new rule for faster index inclusion.
Companies must rank in top 40 by market capitalization.
Rule could impact major AI firms in 2026.

Nasdaq Fast Entry: Big IPOs join index sooner

Nasdaq is proposing a new "Fast Entry" rule to expedite the addition of large, newly listed companies to its index. This initiative seeks to address delays that have historically kept major IPOs and exchange transfers out of the benchmark for extended periods.

The "Fast Entry" rule would allow newly Nasdaq-listed companies with market capitalization ranking among the top 40 current index constituents to be included more rapidly. Such companies would be eligible for accelerated inclusion after 15 trading sessions, with a minimum of five trading days' notice.

These companies would be exempt from the usual seasoning and liquidity requirements. Nasdaq stated that these new constituents would not replace existing index members, temporarily increasing the total number of constituents until the next annual reconstitution. This treatment would align with how spin-offs are handled.