Finance
FTSE Russell proposes cutting free‑float bar to lure foreign firms
Published by Global Banking and Finance Review
Posted on January 27, 2026
2 min readLast updated: January 27, 2026
Quick Summary
FTSE Russell plans to lower the free-float requirement to 10% for foreign firms in London, potentially attracting more listings.
FTSE Russell Considers Lowering Free-Float Requirement for Foreign Firms
Proposed Changes to Free-Float Requirements
LONDON, Jan 27 (Reuters) - FTSE Russell, the index provider, is considering lowering to 10% the minimum free‑float requirement for foreign‑incorporated companies listed in London in one of its FTSE UK benchmarks.
Impact on Foreign Companies
The cut from the current level of 25% would bring foreign companies in the FTSE UK Index Series into line with UK companies, the London Stock Exchange Group said in a consultation published on Monday. LSEG owns FTSE Russell.
Regulatory Context
The change would have no immediate impact because no foreign-incorporated companies are excluded for failing to meet the 25% threshold.
Government Support for Listings
However, LSEG said the change could have an impact over time if it encourages more companies to choose a London listing.
The London stock exchange and regulators have been seeking to get more companies to list in London, after a slowdown in the number of companies going public. Of those that list, many have chosen other exchanges in mainland Europe, the United States or Hong Kong.
LSEG also said no other FTSE Russell indices apply different minimum free-float rules to domestic and non-domestic issuers and added that aligning the requirements would make the indices more representative of the markets they track.
The UK government has urged regulators to support economic growth and competitiveness, as part of a broader mandate aimed at making London a more attractive market for listings.
Earlier this month, new rules took effect that scrap the requirement for companies to publish a prospectus for most capital raises.
(Reporting by Phoebe Seers; editing by Barbara Lewis)
Key Takeaways
- •FTSE Russell may lower free-float requirement to 10%.
- •The change aligns foreign and UK companies in the FTSE UK Index.
- •No immediate impact as no firms fail the current 25% threshold.
- •Potential to attract more foreign listings in London.
- •UK government supports initiatives to boost economic growth.
Frequently Asked Questions about FTSE Russell proposes cutting free‑float bar to lure foreign firms
1What is free-float?
Free-float refers to the portion of a company's shares that are available for trading by the public. It excludes shares held by insiders, employees, or other strategic investors.
2What is a stock exchange?
A stock exchange is a marketplace where securities, such as stocks and bonds, are bought and sold. It provides a platform for companies to raise capital and for investors to trade shares.
3What is a benchmark index?
A benchmark index is a standard against which the performance of a security, mutual fund, or investment portfolio can be measured. It reflects the overall market or a specific segment of it.
4What is capital raising?
Capital raising is the process of obtaining funds to finance a company's operations or growth. This can be done through various means, including issuing stocks or bonds.
5What is foreign incorporation?
Foreign incorporation refers to the process of registering a company in a country different from where its owners reside. This can provide various benefits, including tax advantages and access to new markets.