Nasdaq’s ’Fast Entry’ Rule Cuts Listing Time from 3 Months to 15 Days for Major New Companies
Wall Street's waiting game just got a massive speed upgrade.
Nasdaq is slashing red tape with a proposed 'fast entry' rule—ditching the traditional three-month onboarding marathon for a 15-day sprint. This isn't just an administrative tweak; it's a direct shot across the bow of legacy listing processes that move at a glacial pace.
The Need for Speed in a Digital Age
Why the hurry? In today's market, three months is an eternity. A hot company can go from buzz to bust in that timeframe. Nasdaq's move bypasses the old guard's drawn-out committees and manual reviews, aiming to capture high-value listings before momentum fades or competitors swoop in. It’s a recognition that in finance, as in tech, first-mover advantage is everything.
What 'Fast Entry' Really Means
For qualifying large-cap firms, the path to the bell-ringing ceremony gets radically streamlined. The rule targets companies that already meet stringent governance and financial thresholds, effectively pre-screening them for a near-automatic green light. Think of it as a corporate TSA PreCheck for the stock market elite—fewer hurdles, faster boarding.
The Ripple Effect Beyond the Tape
This shift pressures other exchanges to modernize or lose out on premium listings. It also signals to the broader financial ecosystem that agility is now a non-negotiable competitive edge. The traditional, cautious 'wait-and-see' approach looks increasingly like a relic in a world that trades at the speed of light. Of course, cynics might note that when you're racing to onboard the next big thing, sometimes you forget to check if the wheels are properly attached—but that's a problem for the prospectus, right?
Nasdaq isn't just changing a rule; it's betting that in modern finance, speed isn't just an advantage—it's the entire game.
Elon Musk’s SpaceX to rank among the top 40 current index constituents
Among companies expected to make initial public offerings this year is SpaceX. Its potential $1.3 trillion valuation would make it rank among the top 40 current index constituents. The company would be exempt from standard seasoning and liquidity requirements.
According to Nasdaq, it would not replace an existing index member and would temporarily increase the number of constituents until the next annual reconstitution, in line with the treatment of spin-offs.
Anthropic is also actively preparing for a potential initial public offering (IPO) this year. The AI startup has already hired IPO lawyers and begun early planning. As reported by Cryptopolitan, the AI company is putting together a deal that will increase its valuation to at least $350 billion.
Kaasha Saini, head of index strategy at Jefferies, stated, “There could be concern that passive funds will be missing out in a scenario where the new stock does rally even further and then requires higher turnover when adding it in, […] The proposed change would make the index more representative of the market in a timely way.”
The Nasdaq 100 is directly linked to more than $600 billion in exchange-traded funds worldwide. It has been a key indicator of the stock market, as the AI boom has driven huge profits for the biggest tech companies.
When it comes to IPOs, Nasdaq faces competitors like the New York Stock Exchange. Market watchers say the size of index funds linked to the Nasdaq 100 is likely to help its case for new listings.
Free float requirement changes
Nasdaq also proposed calculating a market cap based on both listed and unlisted shares, rather than only listed shares currently. However, that won’t affect the companies’ weightings in the index, since that will continue to be determined by the value of the shares eligible for listing on the exchange.
Additionally, Nasdaq’s planned revision involves a stock’s free float, or the amount of shares available for trading. The minimum 10% float requirement for eligibility will be removed. However, a new approach is being designed to include companies whose shares are mostly owned by corporate insiders or are not tradable.
These stocks will have their market value multiplied by 5 times, with a cap of 100%, if their free float is less than 20%.That way, funds that use the Nasdaq 100 as a benchmark can still buy in stocks with low float.
Antti Petajisto, head of equities at Brooklyn Investment Group, stated, “Apparently, the idea is to keep low-float firms in the index if they are economically large enough.”
The IPO market has regained momentum. Global IPO proceeds in 2025 ROSE to about $171.8 billion, up approximately 39 % from the prior year. The fourth quarter was the strongest in value terms since late 2021, with record fundraising and deal volume.
Additionally, this week alone marks one of the highest concentrations of IPO activity since 2021 in the US. Several companies are preparing to raise at least $100 million each.
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