Incentives are entirely different. And really now I am starting to think that Nasdaq maybe should not have index it runs in the first place...
This whole story is about Nasdaq (company) specifically dangling inclusion into the Nasdaq-100 (index) as a means to get SpaceX to list on the Nasdaq (market). They're uniquely able to do this by owning a market and also an index that people care about.
NYSE couldn’t really do this because its own indices don’t matter much. FTSE Russell could theoretically make FTSE 100 inclusion easier to help attract a company to list on the London Stock Exchange, but SpaceX choosing London as its primary market would be odd. S&P Dow Jones Indices has no equivalent incentive, because it doesn’t own a listing venue; its main asset is the credibility of the S&P 500.
In all, this entire story has been about Nasdaq specifically being willing to weaken their index rules in order to attract SpaceX to their market.
As someone who has little experience in American stocks and index, would you explain it a bit more ? What you mean that nasdaq is also the market ?
I thought they are both index, a valuation of entreprises and that's all.
So Nasdaq owns the company which facilitates this trading of stocks. But they also own the company which says what are 100 most important companies on that market.
Now they changed rules to get big new most likely popular stock on their market. This could at least maybe get some new brokers in. Or make them in general more desirable market to be connected to and thus get fees.
I am not just sure if there is even more fees in some part I don't know there...
That's a serious conflict of interest.