NEW
YORK, April 17, 2023 /PRNewswire/ -- Effective
April 17, 2023, S&P Dow
Jones Indices ("S&P DJI") is clarifying one of the domicile
eligibility criteria in the S&P U.S. Indices methodology and
the Dow Jones U.S. Total Stock Market Indices methodology as
detailed in the box below. This clarification will not result in
any domicile changes for any U.S. companies, as it simply provides
more clarity and transparency to the existing rule.
Previous
Domicile Eligibility Methodology Statement
|
Updated Domicile
Eligibility Methodology Statement
|
Files 10-K annual
reports
|
Company is subject to
U.S. Securities Exchange Act
reporting obligations for domestic issuers, including
requirements to file periodic reports such as, but not
limited to, Form 10-K annual reports, Form 10-Q
quarterly reports, and Form 8-K current reports.
|
Below are the full U.S. domicile criteria including the above
wording update:
Domicile. Only common stocks of U.S.
companies are eligible. For index purposes, a U.S. company has the
following characteristics:
1. Company is subject to U.S. Securities
Exchange Act reporting obligations for domestic issuers, including
requirements to file periodic reports such as, but not limited to,
Form 10-K annual reports, Form 10-Q quarterly reports, and Form 8-K
current reports.
2. The U.S. portion of fixed assets and revenues
constitutes a plurality of the total but need not exceed 50%. When
these factors conflict, fixed assets determine plurality. Revenue
determines plurality when there is incomplete asset information.
Geographic information for revenue and fixed asset allocations are
determined by the company as reported in its annual filings.
3. The primary listing must be on an eligible
U.S. exchange as described under Exchange Listing below.
If criteria #2 is not met or is ambiguous,
S&P Dow Jones Indices may still deem it a U.S. company for
index purposes if its primary listing, headquarters, and
incorporation are all in the U.S. and/or a "domicile of
convenience". For further information on domiciles of convenience,
please refer to S&P Dow Jones Indices' Equity Indices Policies
& Practices Methodology.
In situations where the only factor suggesting
that a company is not a U.S. company is its tax registration in a
"domicile of convenience" or another location chosen for
tax-related reasons, S&P Dow Jones Indices normally determines
that the company is still a U.S. company.
The final determination of domicile eligibility
is made by the Index Committee which can consider other factors
including, but not limited to, operational headquarters location,
ownership information, location of officers, directors and
employees, investor perception and other factors deemed to be
relevant.
The U.S. Indices methodology and the Dow Jones U.S. Total Stock
Market Indices methodology documents are being updated to reflect
the above changes. For more information about S&P Dow Jones
Indices, please visit www.spglobal.com/spdji
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P 500® and
the Dow Jones Industrial Average®. More assets are invested in
products based on our indices than products based on indices from
any other provider in the world. Since Charles Dow invented the first index in 1884,
S&P DJI has been innovating and developing indices across the
spectrum of asset classes helping to define the way investors
measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies, and governments to make decisions with confidence. For
more information, visit www.spglobal.com/spdji.
FOR MORE INFORMATION:
S&P Dow Jones
Indices
index_services@spglobal.com
Media Inquiries
spdji.comms@spglobal.com
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SOURCE S&P Dow Jones Indices