Venture Exchanges In The U.S. And Right-Sized Disclosure Requirements

In a recent speech delivered at a Futures Industry Association conference (see full text here: http://www.sec.gov/News/Speech/Detail/Speech/1370540289361), Commissioner Gallagher raised the possibility of a venture exchange.  Commissioner Gallagher addressed broader market structure issues in his remarks; however, he devoted a substantial portion of the speech to the benefits that might be associated with a venture exchange for equity securities of smaller companies.  Gallagher noted that a historic one-size fits all regulatory approach may have made the public markets inhospitable for small and emerging companies.  Commissioner Gallagher noted that the SEC's Advisory Committee on Small and Emerging Companies has recommended that the SEC facilitate a marketplace for the securities of small and emerging companies, or a "venture exchange."  Gallagher noted that the SEC is working with the securities exchanges to facilitate a pilot program that would permit smaller