D.C. Strategies has taken a leadership role in the Venture Exchange Coalition, an association charting the course for the creation of venture exchanges in the United States. The Venture Exchange Coalition is promoting the growth and sustainability of small businesses, fostering job creation, and maintaining investor protections.
Venture Exchange Coalition Vision:
Venture Exchanges would be national exchanges, with trading and listing rules tailored for smaller companies, including those engaging in issuances under Regulation A also known as Reg A+.
Shares traded on Venture Exchanges would be exempt from state blue sky registration.
Venture Exchanges would be exempted from the SEC’s national market structure and unlisted trading privileges rules, so as to concentrate liquidity in these venues.
Market makers and analysts will be attracted to Venture Exchanges and their issuers;thereby re-creating some of the ecosystem supportive of small companies that has been lost over the years.
Variables, such as continuous trading versus periodic call auctions, tick sizes, and minimum capitalization, should be left to each exchange to determine, with the aim of creating different, idiosyncratic venues that could compete with one another.
Venture Exchanges will have a transformative impact on small business capital-raising and job creation.
The Venture Exchange Coalition is working with practitioners, academics, and interested parties to generate ideas through evaluating the legal and practical issues, and advocating for their inclusion in legislation and regulation.