Index Giants Clash With Exchanges Over Shareholder Rights
- FTSE Russell and S&P recently placed limits on index inclusion
- With an eye on tech firms, exchanges plan listing rule changes
The flag of the Hong Kong Exchanges & Clearing Ltd.
Photographer: Justin Chin/BloombergThis article is for subscribers only.
The world’s biggest index companies have taken sides in one of the most controversial issues in today’s markets, setting up a clash with stock exchanges pushing to loosen rules on multiple share classes.
The decisions by FTSE Russell and S&P Dow Jones Indices to ban companies that use the structures has already had an effect, with photo-sharing app Snap Inc. now unable to qualify for S&P’s U.S. indexes. But a bigger battle is likely to play out in the months ahead, as bourses from New York to Hong Kong step up efforts to woo such companies while index compilers and fund companies that track their offerings keep the stocks out of benchmarks and investor portfolios.