The changes are under consultation with comments due by May 28 and could take effect around June 8, ahead of SpaceX’s IPO anticipated in late June.

Under the proposed relaxation, mega-cap IPOs could join the S&P 500 as early as six months after debut, relaxing the current 12-month minimum.

SpaceX would pursue a dual-class share structure for its IPO, with a potential to issue over 200 million super-voting restricted shares if it reaches a $7.5 trillion market cap.

Current S&P 500 criteria include U.S. domicile, minimum market cap, liquidity, float, GAAP profitability, four-quarter profitability history, and a 12-month trading history.

Market chatter describes speculative scenarios around rapid index inclusion, IPO timing, and mega-cap governance, while noting execution risks and regulatory review.

The rule changes target megacap companies going public in 2026, which may show positive net income trajectories or unconventional profiles that test traditional index methodologies.

If adopted, funds tracking the S&P 500 would need to buy these new constituents, potentially impacting about $24 trillion in S&P 500 index-tracking assets.

SpaceX’s broader ambitions—ranging from chip manufacturing to a constellation of orbital data centers and Mars projects—are noted alongside potential supply chain and technology risks ahead of the IPO.

Nasdaq is also weighing rule changes to accelerate entry into the Nasdaq 100, including using a mix of listed and unlisted shares for market-cap calculations, with SpaceX reportedly leaning toward a NASDAQ listing.

S&P Global Dow Jones Indices is considering rule changes that could accelerate SpaceX’s entry into the S&P 500, potentially reducing the required time from 12 months to six months after debut on an eligible index.

The proposed changes would mark a significant shift for the index, potentially altering market dynamics by speeding access to a major benchmark for new mega-cap firms.

The proposals include removing the minimum Investable Weight Factor (IWF) of 0.10 for megacap firms and eliminating profitability requirements, allowing companies with limited GAAP net income to be considered.