MSCI Revises Screening Rules for Stocks with Extreme Price Surges, Effective August 2026

Global index provider MSCI Inc. has updated its methodology for screening stocks that experience extreme price increases (EPI), with the new rules set to be applied starting from the August 2026 review.

Specifically, stocks flagged as EPI with a Foreign Inclusion Factor (FIF) of 0.75 or greater will be excluded from the EPI screening process. This means they will remain eligible for inclusion in the MSCI Global Standard Index, provided they meet all other index inclusion requirements.

For stocks categorised as EPI with an FIF below 0.75 that otherwise meet all requirements for inclusion in the MSCI Global Standard Index, MSCI will apply the following treatment. First, stocks that are not currently constituents of the MSCI Investable Market Index (IMI) will not be added to the MSCI Global Standard Index.

Second, existing constituents of the MSCI Small Cap Index that experience an EPI will be treated based on their full market capitalisation relative to the Market Size-Segment Cutoff for the MSCI Global Standard Index. Stocks with a full market capitalisation below 1.8 times the Market Size-Segment Cutoff, or with a free float-adjusted market capitalisation below 1.8 times half of the Market Size-Segment Cutoff, will be retained as constituents of the MSCI Small Cap Index.

Furthermore, such stocks will be removed from the MSCI Small Cap Index but retained in the Market Investable Universe for re-evaluation at the subsequent index review regarding potential inclusion in the MSCI Global Standard Index.