Nasdaq Plan to Fast-Track SpaceX Into Index Draws Manipulation Claims

Nasdaq plans to revise its index “fast-entry” rules so companies ranking among the 40 largest by market capitalization at the time of listing can join after 15 days. The proposal would also apply a fivefold weighting multiplier to companies with low public floats. Because passive funds tracking the Nasdaq-100 must allocate assets according to index weights, the changes could amplify swings in share prices and investors’ portfolios.

Reports estimate that SpaceX could enter the Nasdaq-100 under the new rules soon after listing. The changes are set to take effect on July 7 and could trigger about $10 billion in passive buying. Hedge fund managers have criticized the proposal as structural index manipulation, arguing that combining a low float with a fivefold multiplier would force funds to concentrate their buying at rising prices and intensify market volatility.