The Globe and Mail reports in its Monday edition that S&P Dow Jones Indices said Friday it is expanding eligibility rules for the S&P/TSX series of indexes to allow foreign-domiciled and incorporated companies to be included in its measures of the Canadian equity market.
The Globe's Andrew Galbraith writes that in a statement, the index provider said any Toronto Stock Exchange-listed company will be eligible for inclusion in S&P/TSX indexes as a "foreign issuer," regardless of where it is domiciled or incorporated, if it has a "meaningful presence and/ or economic exposure to Canada."
Companies must also meet other eligibility criteria, including minimum size and liquidity thresholds, for inclusion.
Previously, companies needed to be domiciled or incorporated in Canada to be eligible for inclusion in S&P/TSX indexes, which include the broad S&P/TSX composite and the S&P/TSX 60 index of Canada's largest publicly traded companies.
The new methodology will include foreign issuers at their full float-adjusted market-capitalization. A plan to apply a "foreign issuer factor," which would have included foreign issuers at a 50-per-cent weighting, was dropped after a review of market feedback.
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