Long-Term Stock Exchange is new trading platform backed by the likes of Marc Andreessen, and Peter Thiel’s Founders Fund, that was given the go-ahead by the Securities and Exchange Commission to become a national stock exchange. San Francisco-based LTSE will become the country’s 14th equity market. US stock trading is dominated by markets run by the New York Stock Exchange, Nasdaq, and Cboe, which account for a combined share of more than 60% of volume.
It will be interesting to see if any of the upcoming IPOs will be held there.
US tech companies, many of which have their roots on the west coast, have long griped about the process for listing shares, which is dominated by Wall Street investment banks and exchanges on the east coast. Their concerns include things like high-frequency trading (HFT), activist investors, and pressure to achieve short-term, quarterly results at the expense of longer-term sustainable growth. The for-profit company behind the LTSE has raised money from high-profile tech investors including venture capitalist
One of the platform’s unique, and potentially contentious, proposals is its focus on long-term voting rights: the idea is that shareholders will be granted more voting power the longer they own a stock.