FTSE Russell proposes fast-entry rule for its US indexes as large IPOs loom

Feb 18 (Reuters) - Index provider FTSE Russell on Wednesday proposed introducing a "fast-entry" mechanism for initial public offerings and revising eligibility requirements for its Russell U.S. Equity Indexes ahead of several large listings.

The year is shaping up to be one of the busiest for new listings, with major offerings in the pipeline, including Elon Musk's SpaceX and artificial intelligence firms such as OpenAI and Anthropic.

Currently, IPOs are included only during quarterly reviews and must meet all requirements, such as a minimum 5% free float and 5% public voting rights.

FTSE Russell, a London Stock Exchange Group LSEG.L business, said market expectations suggest some upcoming offerings may not meet these thresholds.

"The consultation therefore proposes both a Fast-Entry mechanism and potential modifications to the minimum float and voting-rights requirements to accommodate these sizeable offerings," FTSE Russell said in a statement.

The index provider is seeking market feedback on the proposals until March 18.

Peer Nasdaq NDAQ.O earlier this month proposed a similar fast-entry rule to speed up the addition of newly listed large companies to its index.