The US government has approved the formation

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  • 10 May 2019 12:00 AM
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SEC Approves New Alternative Stock Exchange Backed by Technology Leaders

The US government has approved the formation of a new Silicon Valley stock exchange following regulatory criticism late last year. Backed by technology leaders, such as venture capitalist Marc Andreessen, the Long-Term Stock Exchange (LTSE) was born out of concern from the public market’s focus on near-term profit. Its mission is to create a “market that reduces short-term pressures and encourages a steady cycle of innovation and investment in long-term value creation that would benefit companies and their investors alike,” according to its website. The LTSE said in a release that it anticipates being ready to accept listings and start trading later this year after completing administrative and technical steps. Prior filings indicated that a key aspect of the exchange could include scaled voting power the longer an investor holds a stake in a company. Firms listed on the exchange may also be required to abide by certain rules, including a ban on tying executive pay to the company’s short-term financial performance.

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