S&P Dow Jones Indices has initiated a consultation period on potential rule amendments that may expedite the inclusion of large-cap companies pursuing initial public offerings into major indices like the S&P 500. According to a statement released on Thursday, the proposed changes would reduce the minimum listing requirement from the current 12 months to 6 months. This confirms a prior Bloomberg report. S&P Dow Jones is also considering new rules that could waive profitability requirements for large companies.

If approved, these modifications would mean companies such as Elon Musk's SpaceX could become eligible for inclusion in the S&P 500 index more rapidly, potentially triggering billions of dollars in mandatory buying. Funds that track the S&P 500 are required to purchase shares of newly added companies. Industry research indicates that approximately $24 trillion in assets are benchmarked to the index.

The proposed adjustment to the "observation period" would apply to the eligibility criteria for the S&P 500, the S&P MidCap 400, and the S&P SmallCap 600 indices. However, the final decision on inclusion would remain at the discretion of the index committee.

The consultation period is set to last until May 28, with any changes taking effect before the market opens on June 8, as per the statement. This timeline precedes SpaceX's anticipated IPO, which is expected in late June, and also comes before potential listings from companies like OpenAI and Anthropic PBC.