LTSE will be the only stock exchange in California
The U.S. government has approved the establishment of Silicon valley to the new stock exchange, which will cooperate with the companies business strategy which focused on the long term, according to CNBC.
The launch of the so-called Long-term stock exchange (Long-Term Stock Exchange, LTSE) was supported by the leading figures in Silicon valley, including venture capitalist Marc Andreessen.
The idea of the exchange has arisen in connection with concern on the part of the technical elite in the U.S., frustrated by the fact that the market players focus on short-term profit. LTSE mission is to create “market, which reduces short-term pressure and promotes sustainable cycle of innovation and investment in creating long-term value that would benefit companies and their investors,” according to the website of the exchange.
In a press release LTSE says that she is ready to start the listings and start trading later this year after fulfilling the administrative and technical tasks.
“The announcement from the SEC (securities and exchange Commission – approx. ed.) is a huge step,” said CNBC CEO LTSE Holdings Eric rice.
Rice, a venture capitalist, first proposed the idea of establishing such initiatives in 2011, owns a significant stake in the holding company of the exchange and helped to raise funds for this enterprise.
LTSE will be the only stock exchange in California and the first in Silicon valley after the closing of the Pacific stock exchange in San Francisco at the end of the dotcom boom, Reuters reports. It is still unknown how well it will compete with such larger and provided with platforms like the new York stock exchange and the Nasdaq, which often involve technology companies.