Comment by parliament32

14 hours ago

What a pleasant surprise. I was positive S&P would get strongarmed into the bamboozle like Nasdaq but it seems they have a bit more integrity. Good for them.

5 comments

parliament32

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Ekaros  12 hours ago

I think key difference here is that Nasdaq is also the market. Where as S&P is external. From this view them manipulating their own market which they profit in various ways actually is somewhat more questionable...

Incentives are entirely different. And really now I am starting to think that Nasdaq maybe should not have index it runs in the first place...

  • petesergeant  7 hours ago

    Yeah, this has taken me several readings to understand, I guess because I hadn't really dug into it or thought about it, and also a lot the articles talk about "stock exchanges competing for SpaceX's business".

    This whole story is about Nasdaq (company) specifically dangling inclusion into the Nasdaq-100 (index) as a means to get SpaceX to list on the Nasdaq (market). They're uniquely able to do this by owning a market and also an index that people care about.

    NYSE couldn’t really do this because its own indices don’t matter much. FTSE Russell could theoretically make FTSE 100 inclusion easier to help attract a company to list on the London Stock Exchange, but SpaceX choosing London as its primary market would be odd. S&P Dow Jones Indices has no equivalent incentive, because it doesn’t own a listing venue; its main asset is the credibility of the S&P 500.

    In all, this entire story has been about Nasdaq specifically being willing to weaken their index rules in order to attract SpaceX to their market.

Hamuko  11 hours ago

Didn't Nasdaq change its rules specifically in order to get SpaceX to list on Nasdaq? Not really sure why other funds would follow them since SpaceX can't list on all of them.

  • ryukoposting  9 hours ago

    They changed the rules to let SpaceX into the Nasdaq 100, which is kinda like the S&P 500 for people who drive Cybertrucks.