Insiders: US Exchanges and Regulators Discuss Easing Regulatory Burdens for Listed Companies

According to a report by Jinse Finance, four sources familiar with the matter have revealed that U.S. exchange operators are in talks with the Securities and Exchange Commission (SEC) to ease regulatory burdens on listed companies, aiming to encourage more high-valuation startups to go public. These discussions involve the SEC, Nasdaq, and the New York Stock Exchange. Proposed reforms under discussion include reducing disclosure requirements, 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 stated, “The numbers are very clear—companies are staying private for longer than ever before.” According to the sources, the talks are focused on regulatory requirements that make it difficult for companies to go public and maintain their listed status. One key area of focus is reforming the current proxy voting process, which requires companies to provide shareholders with information so they can vote on various matters. The reforms would make it harder for activist shareholders with small stakes to launch proxy battles and would limit the ability of minority investors to repeatedly submit proposals. They added that this move would also reduce the disclosure burden in preliminary proxy filings.