Long-Term Stock Exchange

The Long-Term Stock Exchange (LTSE) was founded to be an attractive option for new companies to raise capital while keeping their focus on long-term instead of short-term results. Fewer new companies have been making IPOs in the last 20 years, and executives in charge of recent IPOs have increasingly been burdened with problems caused by short-term investors. The new exchange imposes additional rules on listed companies and their investors, besides the rules required by law and traditional exchanges. Because these additional rules are imposed by an exchange, they can be enforced by existing mechanisms at the U. S. Securities and Exchange Commission.

This article is about about the financial exchange. For for technical systems development, see Laws of technical systems evolution.
Long Term Stock Exchange
TypeStock exchange
LocationSan Francisco, California, U.S.
FoundedMay 10, 2019 (2019-05-10)
OwnerLTSE Group, Inc. (“LTSEG”)
Key people
CurrencyUnited States dollar
Market capUS$0.00 (2019)
VolumeUS$0.00 (2019)
Websitelongtermstockexchange.com

History

Founding

Eric Ries proposed a Long-Term Stock Exchange, among other ideas, in his 2011 book The Lean Startup.[2] After several years of some financial reforms but no one else appearing to champion the concept, he began organizing an LTSE himself in 2015.[3]

SEC approval

LTSE filed an application to the Securities and Exchange Commission for registration as a national securities exchange on November 30, 2018;[4] it was approved on May 10, 2019.[5][6]

In its ruling to approve the application, the SEC noted that it had received one comment objecting to LTSE's registration because of its proposed rule concerning corporate governance of listing companies that does not require "one share, one vote".[7]

In reply, the Commission noted that the proposed rules were substantially similar to those at other national exchanges, such as requiring the independence of most directors, committees for audit and executive compensation, and codes of conduct. But the Commission stated that there is no requirement for "one share, one vote", as long as no existing shareholders are disenfranchised. The Commission also noted that the application did not include any provisions for "time phased voting rights", which would have to be approved separately as a proposed rule change in the future.[7]

The exchange anticipated being ready to accept listings and start trading sometime in 2019.[8]

Exchange features

Operating principles

In an earlier SEC filing, LTSE said that its corporate governance rules might include: increased voting rights for shareholders who hold company stock for long periods of time, restrictions on offering short-term incentives to executives, disclosure of impact of any stock buybacks, and requiring companies to have a board-level long-term product and strategy committee.[9]

See also

Template:LTSE listed stocks

References
  1. https://ltse.com/team/
  2. Lean startup, article about concept
  3. Delaney, Kevin (June 13, 2016). "A group from Silicon Valley has a serious plan for creating a totally new US stock exchange". Quartz. Retrieved 2019-02-08.
  4. "Long-Term Stock Exchange, Inc.; Notice of Filing of Application for Registration as a National Securities Exchange under Section 6 of the Securities Exchange Act of 1934" (PDF). sec.gov. November 30, 2018. Retrieved 2019-02-08.
  5. Somerville, Heather (May 10, 2019). "U.S. regulators approve new Silicon Valley stock exchange". Reuters. Retrieved 2019-05-11.
  6. Osipovich, Alexander (May 10, 2019). "Silicon Valley-backed venture cleared to become 14th U.S. stock exchange". The Wall Street Journal. Retrieved 2019-05-11.
  7. "In the Matter of the Application of Long Term Stock Exchange Inc. for Registration as a National Securities Exchange; Findings, Opinion, and Order of the Commission" (PDF). May 10, 2019.
  8. "When will the Long-Term Stock Exchange be able to accept listings?".
  9. Kevin J. Delaney (March 19, 2018). "The company aiming to create a long term-focused stock exchange has applied to handle IPOs". Quartz.
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