eries

Thank you!

There are many ways to address volatility, and - more importantly - the corporate dysfunctions that volatility can enable. We are working on research that will show that the reforms we advocate with are linked to lower volatility.

In terms of the principles, we advocate for principle-based listing standards which are indeed binding and enforceable. The details are enumerated in our public filings with the SEC and on our website.

CBOE maintains an exchange trading "market share" page, that's what I linked above. It shows the number of transactions that cleared today via code "L" on the SIP. That's LTSE.

correct

to find out if your preferred broker or market maker is a member of LTSE, you can ask FINRA: https://brokercheck.finra.org/

We don't allow companies to list if all they have are vague plans. Each policy requires companies to make structural, externally-verifiable commitments.

Correct. There is no need for you to transact on LTSE for the specific use cases you've outlined in this thread. We are open for business so, for the first time, you're able to if you want to.

We have indeed seen quite a bit of resistance, as you say. I kind of think of it as carving the grand canyon with water and gravity. With sufficient time, determination, and patience, you can make remarkable things happen. We've been able to win over many former skeptics to become allies over the years.

I can't predict the future. I know there are existing public companies for whom this would be a great fit. Can they overcome the inertia and bureaucracy that tends to set in once you go public enough to make a farsighted bet like this? Or will it be up to the next generation of corporate leaders to act with boldness? Time will tell.

I'm as curious as you are to see what happens next...

Probably. I'd love it if someone would build this and get companies and investors to take it seriously.

Agreed. our standards require this

No, we do not restrict liquidity in any way. We simply believe that companies should be able to engage with "speculators" as you call them differently from long-term investors. Ultimately volatility isn't a problem in itself - it's the effect it has on corporate decision-making that matters.

Today's announcement is about our ability to trade all US exchange-listed securities. It's not about listing our own equities. This is what it means to be a National Securities Exchange in the US.

So if you want to trade any US exchange-listed symbol, your broker can do that on LTSE (assuming they are a member)

As with everything, there is a delicate balance to be maintained. Toyota is an interesting example from the Japanese context. Luckily (?) things are today so out of whack that I don't think we have to worry about overcorrecting - for now.

Everything we do is completely transparent. If a company deliberately violates the policies they have publicly adopted, not only would they be delisted they would likely be committing securities fraud. I think it's likely you'd hear about it.

You imply rather than state directly that you fear our regulatory decisions would be influenced by our commercial interests, so just to address that part, we have an extensive set of checks and balances in our own corporate structure that double-buffer these decisions.

There's a lot of literature on this topic, and many empirical studies that call these assumptions into question. Just picking one at random from the set I've seen recently: https://www.ey.com/Publication/vwLUAssets/EY_Poland_Report/%...

Companies care about many things other than mere multiples. And there are many factors that influence multiples. So I think it's accurate to say that companies consider many factors when deciding where and how to list.

I don't know if this is as true as you think. First of all, I've been laughed out of a lot of rooms for pitching this idea. Hundreds, by now.

Further, although many VC's are indeed herd animals as you seem to suggest, there are a few bold ones who genuinely hunt for new and radical ideas and would be willing to back a first-time founder - if you're willing to do the work.

I see this criticism a lot in the various threads, but I don't really understand it. As a stock exchange, we are strictly regulated. We aren't allowed to make vague claims that are not backed up by regulatory filings, all of which are publicly available both on our website and at the SEC. For example (from least to most detailed):

https://longtermstockexchange.com/listings https://www.sec.gov/rules/sro/ltse.htm https://longtermstockexchange.com/static/principals_for_lt_s... https://www.sec.gov/rules/sro/ltse/2019/34-86327.pdf https://www.sec.gov/rules/other/2018/long-term-stock-exchang...

Quarterly reporting is an SEC requirement, so we don't affect that. We do require certain additional reports be filed on an annual basis.

Companies prove their long term by adopting policies responsible to our long-term principles. The way this works is spelled out in a lot of detail both on our website and in our regulatory filings. Here's more of a layman's overview: https://longtermstockexchange.com/static/principals_for_lt_s...

Every broker has its own internal rules about where to direct its order flow. Some "internalize" the trade and don't send it anywhere. Others get paid to direct the order to a specific market maker, exchange, or dark pool (called PFOF).

Others allow their clients to direct orders using a specific trading strategy. If you have a family office it's very likely this is part of the strategy.

However, ordinary retail investors are sometimes locked out of this system. I don't know Etrade's policy in particular, so I can't say for sure what you would have to do.

I don't understand this criticism. We are actively trading stocks today: https://markets.cboe.com/us/equities/market_share/

You can call your broker right now and ask them to direct your orders to a specific exchange, including "L" on the SIP.

Same as any other exchange. The new entity will either have to meet the listing standards or be de-listed.

Good point: https://markets.cboe.com/us/equities/market_share/

Sure. I don't have an objection to short-term investors, even the long-term investors like having them around to provide liquidity. But I don't think an investor who has an average equity holding period of 10 minutes should be involved in corporate governance.

Ask your broker. They are probably a member already.

Yes, the major broker-dealers and market makers are members of the exchange. You can route orders to LTSE via your existing broker, just call them up and ask them to do so.

I believe Interactive Brokers, in particular, extends this privilege to all of their retail customers. But I don't have first-hand knowledge of this, just what I've heard.

Yes, there are incentives. But I object to your characterization of doing the right thing as "good boy points." Acting ethically and treating people right is its own reward _and also_ has been repeatedly shown to lead to outperformance.

Our exchange works differently than the legacy players, so I don't really understand your last point.

Yes, but I don't have anything to announce at this time.

Yes, all of our listed securities will be available in regular brokerages. If your current broker allows it, you can even ask them to direct trades to LTSE as opposed to another exchange. Although most retail brokerages do not allow customers do specify this, a few do.