FTSE Russell to align free-float rules for UK, foreign firms

March 26 (Reuters) - Index provider FTSE Russell said on Thursday it would align the minimum free-float requirement for UK and non-UK companies in the FTSE UK Index Series from the June 2026 review.

Under the change, companies incorporated inside or outside the UK will need at least 10% free float to qualify for inclusion in the FTSE UK Index Series. Non-UK companies currently face a 25% minimum free-float requirement.

FTSE Russell, a London Stock Exchange Group LSEG.L business, said the change removes the gap between UK and foreign companies and makes the indices better reflect real market exposure. The rule is also in line with the London Stock Exchange's minimum free-float requirement.

"While we do not expect any immediate impact on index constituents, this change aims to strengthen how accurately the indices reflect the UK market," David Sol, global head of policy at FTSE Russell, said in a statement.

In February, FTSE Russell also proposed a "fast-entry" mechanism for IPOs and changes to eligibility criteria for its Russell U.S. Equity Indexes, as market expectations indicated some forthcoming listings may not meet the current thresholds.

Peer Nasdaq NDAQ.O also proposed a new rule last month to speed up the inclusion of newly listed large companies in its index, seeking to address delays that have left major IPOs and exchange transfers out of the benchmark for months.