NASDAQ
New Nasdaq rules fast-track main index for large caps
Nasdaq will change its rules to allow newly-listed large companies to reach its main index more quickly, ahead of initial public offerings from companies like SpaceX and OpenAI. New listings with a market capitalisation ranking within the top 40 members of Nasdaq-100 can be added to the index after their 15th day of trading under these rules. Previously, this would require at least three months after an IPO. “Currently new constituents can only be added at reconstitution or as replacements, which leads to large newly listed companies often being delayed from index inclusion, creating a gap between investor expectations and index market representation,” Nasdaq wrote in a consultation document. “‘Fast Entry’ reduces that gap and allows for more timely market representation.” “It is not necessarily representative to have a company that's big and could have a sizable representation in the index to keep them out for that long," Nasdaq global head of index solutions Cameron Lilja told Reuters. Major companies are increasingly staying private for longer and amassing large market capitalisations before an IPO, said Lilja. The number of public companies listed on United States exchanges has fallen by 36% since 2000, Nasdaq f
IPOs: eToro’s Nasdaq debut signals fintech revival
Retail trading giant eToro has officially joined Nasdaq, pricing its IPO at US$52 per share, exceeding its expected range of $46-$50. The Israel-based brokerage raised $620 million, with shares sold by both the company and existing investors. This move values eToro at $4.2 billion, marking a significant milestone for the fintech sector as investor confidence rebounds. With a growing user base and surging crypto revenues, the company is positioning itself as a formidable competitor to Robinhood and Webull. The timing of eToro’s public offering is strategic. After shelving its IPO plans in 2022 due to market volatility, the company seized the opportunity as inflation cooled and investor sentiment improved. The return of United States President Donald Trump and easing tariff concerns have helped revive the IPO market, with eToro following the successful listing of CoreWeave earlier this year. BlackRock’s interest in purchasing $100 million worth of shares further underscores institutional confidence in eToro’s growth trajectory. Founded in 2007, eToro has evolved from a stock brokerage into a crypto-heavy trading platform, with digital assets now accounting for 25% of its net trading contribution, up from 10% the previous ye
US equities demand sees Nasdaq to start 24hr trading
Overseas demand for the United States' capital heavy equities market has prompted the Nasdaq to look at introducing 24-hour trading five days a week next year on its flagship American exchange, its President Tal Cohen wrote in a LinkedIn post. The value of total foreign holdings of U.S. equities had reached $17 trillion by June 2024, a 97% increase since 2019 and Nasdaq president Tal Cohen wants to increase exposure to global investment on the share register. “Wealth accumulation across major regional economies reduces barriers to accessing markets, and an ever-increasing appetite to share in global prosperity is driving investors to engage with U.S. markets more than ever before,” Cohen says. "In the APAC region, investors are increasingly turning their attention to U.S. markets, drawn by the depth of opportunities, strong regulatory framework and access to high-growth sectors such as technology and healthcare. "With rising financial literacy and proliferation of digital trading platforms, these investors have become more sophisticated - leveraging a diverse range of strategies, such as investing in options and ETFs. Further proof of global interest was that over 56 exchange traded products launched in the last fiv