MSCI has updated the eligibility criteria for its Global Investable Market Indexes, introducing stricter requirements for non-operating companies. Firms must now ensure that over 50% of their total assets are classified as operating assets to remain in the indexes.
The provider will also evaluate companies based on five specific financial ratios. A firm faces potential exclusion if it fails the operating assets test and does not meet four of the five financial benchmarks.
The new rules take effect with the November 2026 index review. The list of affected companies will be published on November 11, 2026, with exclusions becoming effective after the market closes on November 30, 2026.
JPMorgan analysts estimate that the removal of Strategy from the indexes could trigger approximately $2.8 billion in outflows from passive funds. MSCI has implemented a buffer for existing index members, requiring them to fail the tests over two consecutive annual reporting periods before removal.
Strategy, Metaplanet, Yellow Cake, and SharpLink have been identified as companies potentially affected by these changes. Both Strategy and Metaplanet have expressed opposition, claiming the new framework unfairly impacts firms with digital asset treasury strategies.
