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Free Float · FTSE Russell · Index Methodology · UK Indices
FTSE Russell, owned by London Stock Exchange Group PLC, announced it is lowering the minimum free float requirement for non-UK incorporated companies from 25% to 10%, effective June 2026 index review, aligning requirements with UK-incorporated firms for FTSE UK Index Series eligibility.
This significant policy adjustment, announced on March 26, 2026, harmonizes the eligibility criteria for international companies with those already in place for UK-incorporated entities and the London Stock Exchange Main Market, both of which mandate a 10% minimum free float. FTSE Russell explicitly stated that the primary objective of this change is to enhance the representativeness of UK indices, ensuring they more accurately reflect the real economic exposure they are designed to measure.
David Sol, FTSE Russell Global Head of Policy, confirmed that these index methodology reviews are conducted regularly to maintain market relevance. While Sol indicated no immediate impact on existing index constituents is anticipated, this strategic alignment aims to strengthen the long-term accuracy of the indices in reflecting the UK market.
Bloomberg had previously reported in late January that LSEG was in discussions regarding a potential reduction in this free float requirement, according to Alliance News reporter Emma Curzon.
