Quoth the Raven
· QTR’s Fringe Finance
· June 08, 2026 at 23:01
· ⏱ 6 min read
| Read on Substack ↗
Summary
S&P Dow Jones resisted industry pressure to fast-track mega-IPOs like SpaceX into the S&P 500, maintaining its 12-month seasoning and GAAP profitability rules. This is presented as a pro-investor stance that differentiates S&P from rivals Nasdaq and FTSE Russell, which caved to issuers and bankers. The decision implies that index providers with stronger governance (S&P) may benefit reputationally, while those with conflicts (MSCI, Nasdaq) face scrutiny.
•MSCI's 2025 revenue was $3.13B, with $338.5M (10.8%) coming from Blackrock's iShares, raising conflict-of-interest questions.
•SpaceX is estimated to IPO at a $2T valuation — equal to 100 years of its revenue, GDP of Australia, and the entire US energy sector market cap.
•S&P rejected proposals to fast-track mega-IPOs, keeping its 12-month post-IPO and GAAP profitability requirements without exception for size.
•Nasdaq was the first index provider to cave, using its index as a carrot to lure the IPO.
•FTSE Russell cited client support for fast-entry, including asset managers and sell-side firms.
•Context: Microsoft IPO at $775M, Tesla at $2B, Facebook at $100B, Uber at $80B — highlighting SpaceX's unprecedented size.
Author praises S&P for being 'an adult in the room' and taking a stand on behalf of investors, which strengthens the S&P brand and may reinforce trust in its indices versus competitors.
Author praises S&P for being 'an adult in the room' and taking a stand on behalf of investors, which strengthens the S&P brand and may reinforce trust in its indices versus competitors.
Risk: If pressure to include mega-IPOs intensifies, S&P could face competitive disadvantages if investors prefer faster inclusion elsewhere.
Article highlights MSCI's 10.8% revenue dependence on Blackrock's iShares, implying potential conflicts in index rule-making that could undermine perceived independence.
Article highlights MSCI's 10.8% revenue dependence on Blackrock's iShares, implying potential conflicts in index rule-making that could undermine perceived independence.
Risk: Regulatory or client scrutiny over governance could lead to reputational damage or revenue loss.
Article states Nasdaq 'caved' and used its index as a 'carrot to lure the IPO,' suggesting compromised governance and short-term thinking that may alienate passive investors.
Article states Nasdaq 'caved' and used its index as a 'carrot to lure the IPO,' suggesting compromised governance and short-term thinking that may alienate passive investors.
Risk: If index integrity concerns grow, Nasdaq could face outflows from ETF providers or negative press.
This newsletter, published June 08, 2026,
features Quoth the Raven
discussing SPGI, MSCI, NDAQ.
3 trade ideas extracted by AI with direction and confidence scoring.