The Small Capital Market Exchange Development Task Force—Charter

by Dustin Watkins

The Small Capital Market Exchange Development Task Force was formed by the International Stock Exchange Executives Emeriti at their meeting in New York City on April 9, 2014.

The Task Force will study and make recommendations for the establishment of a dedicated small capital market exchange outside the United States. The potential exchange would likely appeal directly to investors and small companies as an alternative to the current IPO process in the United States. The Task Force will be made up of members of the ISEEE board and other knowledgeable interested parties.

The attributes of the exchange would be chosen to attract new companies to the exchange and offer investors the ability to invest in high growth companies. Regulation would be derived from the home country and should be a “light hand” regulation with sufficient transparency to attract investors, market makers and small companies. The Task force may survey best practices employed by the leading exchanges across the world and adopted as appropriate by the new exchange. The platform should be low-cost and provide incentives for company research and market makers as well as incentives for investors. The exchange would place a premium on transparency of the small company financials as well as the exchange trading environment.

Other related exchange activities may involve providing a clearinghouse for management talent for listed companies and market data and analytics for investors. The exchange would also explore the joint listing of companies that grow to the point where they might be listed on other exchanges.

Steven Shelton, Chairman of the SCMED Task Force
David  Franasiak, Deputy Chairman of the SCMED Task Force