Progress For Venture Exchanges

We have seen various initiatives intended to promote capital formation for smaller reporting companies and emerging growth companies. Among these initiatives, the development of venture exchanges in the United States appears to be gaining momentum. The exchanges would, in comparison to their larger national exchange counterparts (Nasdaq Stock Exchange, New York Stock Exchange, etc.), allow smaller or earlier-stage companies to list their shares and provide for some liquidity.

Support for the formation of venture exchanges has come from representatives from NYSE MKT and Nasdaq OMX, who in May testified before Congress as to the need and proposed structure of a venture exchange. Additionally, a push for legislation promoting capital formation, supported by testimony from a group of industry professionals, has led to the introduction of the Main Street Growth Act, which sets rules and listing standards for a new venture exchange. In February, SEC Chair Mary Jo White