According to informed sources, FTSE Russell is considering amending relevant rules to facilitate the inclusion of foreign companies into its UK stock indices, a move that could potentially enhance London's appeal as a listing destination.

The sources indicated that the index compiler, part of the London Stock Exchange Group, is discussing a reduction in the free float requirement for foreign-registered companies listed in London from 25% to 10%. This adjustment would place international companies on an equal footing with domestic UK firms.

This potential change would complement a series of recent reforms introduced by the UK government, market regulators, and the exchange itself, all aimed at boosting London's attractiveness as a destination for Initial Public Offerings (IPOs). It could also have a material impact on the composition of the FTSE 100 index, with the possibility of smaller domestic companies being displaced by larger global competitors.

One of the sources mentioned that a consultation process on the matter could be announced as early as next week. A spokesperson for FTSE Russell stated that the company "continuously reviews its indices to ensure they remain relevant and accurately reflect financial markets," but declined to comment on any specific details.