The SEC authorized the Long-Term
Stock Exchange, Inc. ("LTSE"), a Silicon Valley-based
venture, to operate as a U.S. national securities exchange.
In a statement, LTSE said that the
SEC decision "authorizes the company to operate a fully
automated electronic platform for the buying and selling of
shares." LTSE, which will be the 14th U.S. Stock Exchange,
said it will be the "only U.S. stock exchange designed . . .
to help companies create lasting businesses and empower
long-term-focused investors."
The Council of Institutional Investors ("CII") submitted a comment letter to
the SEC stating that it did not support the LTSE's application
to become a national securities exchange. According to CII, the
LTSE's application conflicts with CII's membership-approved
policies by proposing "Corporate Governance
Requirements," which would allow it to have multi-class share
structures with unequal voting rights. Additionally, CII stated
that its application does not include
