NEW
YORK, July 5, 2023 /PRNewswire/ -- Effective
July 5, 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
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Updated Domicile
Eligibility Methodology Statement
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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.
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Company satisfies its
periodic reporting obligations
under the U.S. Securities Exchange Act by filing forms
for domestic issuers, such as, but not limited to, Form
10-K annual reports, Form 10-Q quarterly reports, and
Form 8-K current reports.
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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:
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1.
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Company satisfies its
periodic reporting obligations under the U.S. Securities Exchange
Act by filing forms for domestic issuers, such as, but not limited
to, Form 10-K annual reports, Form 10-Q quarterly reports, and Form
8-K current reports.
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2.
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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.
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3.
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The primary listing
must be on an eligible U.S. exchange as described under Exchange
Listing below.
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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.
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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.
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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.
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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