What Are Venture Exchanges and How Should They Be Regulated

The attractiveness of an investment is heavily influenced by whether the investment can be easily sold at a reasonable price when the investor decides to sell that investment. Venture exchanges have been proposed to create a robust, liquid secondary market for the securities of small and medium-sized companies. Properly done, these exchanges would help these dynamic companies raise capital and help their investors achieve a better return. Venture exchanges would help promote innovation, economic growth and job creation. The issue of whether to create venture exchanges is particularly relevant given the recent release of the SEC’s new Regulation A+ final rule implementing Title IV of the JOBS Act. Venture exchanges could trade the securities issued by smaller public companies, and those issued under the JOBS Act Regulation A+ and crowdfunding provisions.

Join us as our panelists discuss the current regulatory impediments to venture exchanges, the lessons to be learned from previous U.S. experience and from the Canadian and British experiences with exchanges for smaller market capitalization companies, and the different ways that these exchanges could be established.