US regulators approve new Silicon Valley stock exchange
SAN FRANCISCO US regulators on Friday approved a new stock exchange that is the brainchild of a Silicon Valley entrepreneur, a move that will give high-growth technology companies more options to list their shares.
The US Securities and Exchange Commission approved the creation of the Long-Term Stock Exchange (LTSE), a Silicon Valley-based national securities exchange promoting what it says is a unique approach to governance and voting rights, while reducing short-term pressures on public companies.
The LTSE is a bid to build an exchange in the US' tech capital that appeals to hot start-ups, particularly those that are money-losing and want the luxury of focusing on long-term innovation.
It was proposed to the SEC in November by technology entrepreneur and start-up adviser Eric Ries. He raised US$19 million (S$26 million) to get his project off the ground, but approval from US regulators was necessary.
The new exchange would have rules designed to encourage companies to focus on long-term innovation rather than the grind of quarterly earnings reports by asking them to limit executive bonuses that award short-term accomplishments. - REUTERS
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