US Exchanges and Regulatory Agencies Discuss Reducing Regulatory Burden on Listed Companies

According to four informed sources, US exchange operators are in talks with the US Securities and Exchange Commission (SEC) to reduce the regulatory burden on listed companies, in order to encourage more high valuation startups to go public. These discussions involve the SEC, NASDAQ, and the New York Stock Exchange. The reform measures under discussion include reducing information disclosure, lowering listing costs, and making it more difficult for minority investors to take aggressive actions. The negotiations have been ongoing for several months. Nasdaq President Nelson Griggs said, "The numbers are very clear, and the company is now staying private for an increasing amount of time." Insiders said that the discussion is focused on regulatory requirements that make it difficult for the company to go public and maintain its listing status. One of the focus areas is the reform of the current proxy voting process, which requires companies to provide information to shareholders so that they can vote on various matters. The reform will make it more difficult for radical shareholders holding a small number of shares to initiate a battle for proxy voting rights and suppress minority investors from repeatedly submitting proposals. They added that this move will also reduce the disclosure burden in the initial power of attorney application.