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We are thrilled that the SEC has officially approved the Long-Term Stock Exchange as a national securities exchange!
by bethly 7y ago
We are thrilled that the SEC has officially approved the Long-Term Stock Exchange as a national securities exchange!
- jayp 7y agoI am happy for LTSE. The article doesn't explains what makes LTSE different than NYSE? How will it actually encourage looking beyond the next quarter? Where can one learn about that?
- yohann305 7y agoi found more info here, hope it helps: https://blog.ltse.com/how-ltse-will-and-will-not-be-like-other-stock-exchanges-b0d56c490898 https://blog.ltse.com/how-ltse-will-and-will-not-be-like-oth...
- throwaway2048 7y agoThis gives zero detail about how LTSE will actually be meaningfully different.
- topspin 7y agoIndeed there is very little. Just some mumble mouthing about "intentions." ""But unlike those exchanges, ultimately our intention is that when companies list shares on LTSE for sale to the public, they will adopt a set of governing practices that are designed to help them build lasting businesses and empower long term-focused shareholders."" Utterly indistinguishable from the Wooden Language heard from every such grandee. I am not one to indulge the sort of naivety that might allow me to pretend that powerful investors are going to tolerate any more impediments to their desires than legally required, or at least enforceable, so unless there are concrete differences imposed by SEC et al. I expect this is -- or eventually will be -- simply Wall Street West.
- segmondy 7y agoIt's designed for long term investing. Not a place for day traders, high frequency trading and all sorts of sharks and piranhas that like to eat up pensions and 401k funds...
- throwaway2048 7y agoWhat exactly stops them from investing anyways
- segmondy 7y agoHFT get special trading codes they use to their advantage. They can see when a large order is being placed by an institutional investor and use it to their advantage to skim off a little bit.
- jstanley 7y agoEven if true, that's not an inherent property of HFT, that's just standard corruption: some traders get unfair access to private information about other traders' future plans. Getting rid of HFT wouldn't get rid of that kind of corruption, and getting rid of that corruption wouldn't get rid of HFT.
- natalyarostova 7y agoPensions and 401k funds are not required to do any sort of short-run trading, and the asymptotic value of a security on each exchange will be the same. It won't meaningfully impact any sort of long run value of a pension fund or 401k (that is passively managed)
- jstanley 7y agoHow exactly do you believe high-frequency traders "eat up" pension funds? The only time any limit order gets executed is when it is the best price available. From the other perspective, the price a market order is matched at is the price of the best limit order available. In the absence of high-frequency traders, the best price available will be worse, not better.
- miohtama 7y agoIf this exchange is mostly for value investing, as it sounds like, what barriers will LTSE set to prevent high frequency trading and other byproducts of access focused trading?
- labawi 7y agoReading the title, I was excited expecting something like a round-based stock exchange, only evaluating orders and publishing information every hour.
- function_seven 7y agoThe only concrete(ish) thing I could find was this quote: > ...and reward long-term shareholders by giving them more voting power the longer they hold the stock. I'm not sure how that would affect the behavior of traders in any particular stock. Seems like it would allow a "committed minority" of shareholders the ability to control the company, without having different classes of stock determined upfront? In any case, Matt Levine's article on it is a good read: https://www.bloomberg.com/opinion/articles/2017-10-16/the-long-term-stock-exchange-is-worth-a-shot https://www.bloomberg.com/opinion/articles/2017-10-16/the-lo...
- deleted 7y ago[deleted]
- bethly 7y agoThis approval is just a first step; we intend to augment (subject to SEC approval) the exchange's listing rules with those innovations.