The stock market index is proposing a rule change that would allow foreign-domiciled companies to remain in Canadian benchmarks, according to a report published earlier this month—as Teck’s merger with Anglo American risks pushing it out of the S&P/TSX Composite. (The Globe and Mail, The Logic)

Talking point: While shareholders and Ottawa already approved the deal in December, the move has received investor backlash. According to The Globe and Mail Canadian investors would be forced to sell roughly $2.4 billion in Teck shares. The proposal would classify certain TSX-listed firms as “foreign issuers,” giving them a 50 per cent weighting based on public float—effectively preserving Teck’s presence in Canadian indices post-merger. S&P is weighing trade-offs including potential overlap with U.S. indices, whether additional Canadian presence requirements are needed and how to apply reduced weighting to companies not domiciled in Canada. The firm is also balancing these changes against existing liquidity rules, including the requirement that index constituents maintain at least 25 per cent annual trading turnover in Canada.