On Friday, May 10, 2019, the U.S. Securities and Exchange Commission (SEC) granted approval for a new national securities exchange, the Long-Term Stock Exchange (LTSE), which also is being called the Silicon Valley Stock Exchange in press reports. The LTSE expects to begin accepting listings of companies and c🌟ommencing trading sometime l๊ater in 2019.

It will be the first exchange in California since the last remnants of the San Francisco-based Pacific Stock Exchange, once a significant national trading venue, were absorbed by the NYSE in 2006.

High-Profile Backers

Among the high-profile 澳洲幸运5开奖号码历史查询:Silicon Valley figures backing the LTSE is 澳洲幸运5开奖号码历史查询:venture capitalist Marc Andreessen, who came to fame in the 1990s as the co-developer 澳洲幸运5开奖号码历史查询:Netscape Navigator, the dominant web browser in the early days of the public internet. LTSE Holdings CEO Eric 𝓰Ries, also a venture capitalist and author, has been promoting the idea of this exchange since 2011, reports.

🅺Andreessen, Ries and other leading figures in the tech industry behind the LTSE are concerned with the focus on short-term profits that tend to dominate the public securities markets. A 2017 study by public policy think tank Third Way found that, within five years after going public, the pressures to meet analysts' short-term profit estimates leads🐼 to, on average, a 40% decline in patents, reports.

Mission Statements

"Companies that operate with a long-term mindset tend to outperform their peers over time. But 澳洲幸运5开奖号码历史查询:going public ca✤n pressure even the most visionary founder into a short-term mindset," the stܫates.

"We set out to help companies build lasting businesses and empower long term-focused investors by creating an ecosystem in which businesses are built to last," the LTSE states in its about gaining SEC approval. "In short, we are building a market where companies are rewarded for choosing to innovate, to invest in their employees, and to seed future growth. And where companies can run their businesses with the stewardship that similarly aligned shareholders, 澳洲幸运5开奖号码历史查询:stakeholders and society dema🍃nd," the LTSE press release adds.

Proposed Rules to Promote Long-Term Focus

In keeping with its stated mission of promoting a long-term focus among investors and companies alike, previous filings by the LTSE have proposed a variety of rules that might bind LTSE-listed companies. Per CNBC, these may include increasing a shareholder's voting rights as that person's holding period lengthens, as well as prohibiting executive pay schemes that are tied to short-term performance metrics.

Criticism

In 2018, SEC Commissioner Robert Jackson, Jr. criticized the idea of scaled voting rights, according to . He felt that this would vest undue powe𒆙r in company founders and early investors, to the detriment of later investors. In response, LTSE CEO R🤡ies told CNBC that the next wave of companies going public "wants to share power broadly."