NEW YORK, Feb 4, 2026, 13:38 (EST)
- Nasdaq put forward a “Fast Entry” rule aimed at accelerating the inclusion of newly listed large companies into the Nasdaq-100.
- The draft proposes adding eligible newcomers after 15 trading days, giving at least five trading days’ notice, and without cutting any current members.
- Nasdaq’s consultation also details proposed changes to market-cap rankings, adjustments to low-float weighting, and updates to quarterly index maintenance.
Nasdaq has put forward a “Fast Entry” rule aimed at getting newly listed large firms into the Nasdaq-100 index more quickly.
This shift might speed up the inclusion of major IPOs and exchange transfers into the benchmark that supports Invesco’s QQQ exchange-traded fund.
The reason this matters now is straightforward: the Nasdaq-100 drives how investors gauge “big tech” risk. When the index shifts quickly, funds tracking it often need to adjust positions rapidly, occasionally facing volatile starts.
This shifts expectations. Currently, a company that’s clearly large enough for the Nasdaq-100 can remain excluded for months, stuck waiting on scheduled index updates or an available spot.
Nasdaq’s Nasdaq-100 methodology consultation outlined a “Fast Entry” rule for new listings. If a company’s entire market cap — the value of all its shares — places it in the top 40 among current Nasdaq-100 members, it could join quickly. The exchange would give at least five trading days’ notice before adding the stock after 15 trading days, skipping the usual “seasoning” period and some liquidity tests. This proposal wouldn’t require cutting a name immediately, so the index might temporarily exceed 100 stocks until the next annual rebalancing. Nasdaq also proposed tweaks to how it counts unlisted shares in market-cap rankings and how it weighs stocks with low float, or shares that aren’t freely traded. (Nasdaq Global Index Watch)
Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said the move might “draw more attention from investors to newly listed high-growth stocks,” but warned it could also increase short-term volatility as index funds make adjustments. (Reuters)
Separate SEC filings reveal some managers are already heavily invested in the QQQ trade. Activest Wealth Management held 87,734 shares of Invesco QQQ at the close of Q3 2025, up from 79,645 shares the previous quarter. Penserra Capital Management’s filing showed 66,979 shares at the end of Q3, rising from 53,091 shares earlier. (SEC)
QQQ tracks the Nasdaq-100, so any faster-entry rule triggers changes in the ETF’s holdings as soon as the index updates. For investors, this could mean faster exposure to a new mega-cap star — or being pushed into buying during the most volatile phase of a fresh listing.
The proposal isn’t set in stone yet. Nasdaq is still gathering feedback, and the final approach could shift, face delays, or be scaled back—particularly if investors raise concerns about turnover, trading expenses, or how low-float stocks are weighted.
Even if “Fast Entry” is approved, it carries a key risk: newly listed giants often show volatility at the start, and index-driven buying or selling can magnify price swings during the inclusion period. Some days this boosts liquidity, on others it just adds noise.
Nasdaq said it plans to incorporate any final changes into its scheduled index events instead of making ad-hoc adjustments, aiming to keep the benchmark aligned with market leaders without frequent minor updates.
