Nasdaq President Nelson Griggs said the exchange broke no rules in securing the upcoming initial public offering of SpaceX [1].
This development comes as Nasdaq modifies its internal regulations to allow large, high-profile companies to enter its index more rapidly following their public debut. The move reflects a strategic effort by the exchange to attract massive private companies and streamline the transition from private to public trading.
Speaking on Bloomberg Television’s program “Bloomberg Open Interest,” Griggs addressed questions regarding the competitiveness of the bid for the SpaceX listing. He said that the process was conducted within the bounds of existing regulations [1].
Beyond the SpaceX listing, Griggs detailed a new methodology that went into effect on a Friday [2]. This change is designed to accelerate the timeline for companies to be added to the Nasdaq index after they complete an IPO [2].
“The new methodology will speed up the entry of market listings after an IPO,” Griggs said [2].
Traditionally, index inclusion can involve waiting periods or specific criteria that take time to satisfy. By updating these rules, Nasdaq aims to make its platform more attractive to the largest companies in the world, which often seek immediate visibility, and liquidity in major indices upon going public.
Griggs said that the exchange is focusing on efficiency to better serve the needs of modern, large-scale enterprises. He said that the pursuit of the SpaceX IPO was a legitimate business victory for the exchange [1].
“"No rules were broken in winning the SpaceX IPO."”
The acceleration of index inclusion rules suggests Nasdaq is pivoting to compete more aggressively for 'mega-IPOs.' By reducing the friction between a company's listing date and its inclusion in a major index, Nasdaq increases the immediate demand for shares from index-tracking funds, which can provide a significant liquidity boost for newly public companies like SpaceX.
