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The Long-Term Stock Exchange Opens for Business

blog.ltse.com

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Re: The Long-Term Stock Exchange Opens for Business

#241

Post by JumpCrisscross »

codeulike wrote: post #74
lr wrote: post #61

Just throwing this out there... Why not a simple rule to require all shares to be held for at least 24 hours before selling? It would certainly change the game in every way imaginable.

It would but powerful vested interests would probably fight it tooth and nail. See https://en.wikipedia.org/wiki/Tobin_tax

> powerful vested interests would probably fight it tooth and nail

Minimum holds are very different from trade taxes. (The latter is stupid for a variety of reasons.) Minimum holds would make market making more profitable.

Re: The Long-Term Stock Exchange Opens for Business

#243

Post by R0b0t1 »

cthalupa wrote: post #153
R0b0t1 wrote: post #90

Earlier quoted context omitted.

I did not see any racial connotations when I read this, let alone any negative ones.

It is quite explicitly related to the reservations that colonists have pushed indigenous people to. In America this situation was particularly bad for many tribes, and in general connotes a significant loss of freedoms and impact to culture even when there wasn't specifically physically violence involved. The actual phrased specifically originated as a derogatory term for any indigenous person who was not staying on…

Yes, it is (probably) related to Indian/Native American reservations, but that does not mean every utterance of an allusion to history is perpetuating racial injustice.

Frankly having people like yourself chime in at every juncture to tell other people they are perpetuating racism is cheapening the actual historical impact of these events. If you care about the people you claim to defend then do something to help them.

Please keep in mind the GP/GGP comment to this was folded for being offtopic.

Re: The Long-Term Stock Exchange Opens for Business

#244

Post by waynenilsen »

eries wrote: post #160
waynenilsen wrote: post #103

What support will there be for high frequency trading? What is required for Direct Market Access? Will the realtime data feed be public? What is the fee schedule?

- What support will there be for high frequency trading? LTSE's market is designed to create a level playing field for all market participants. We provide equal support across all of our members. - What is required for Direct Market Access? A relationship with a member of LTSE who offers DMA. - Will the realtime data feed be public? Yes, LTSE's market data can be accessed via the SIP's (Securities Information Process…

Regarding "a level playing field for all market participants" I don't believe that in an exchange that supports HFT there can be a truly level playing field. There are some technologies that can help mitigate the effects of HFT on the market. One is the approach that AZX [1] took where you do large and infrequent dual auctions. Another approach is to go with an Automated Market Maker (AMM) technology and eliminate the need for order books all together as has become popular recently in the cryptocurrency space. Some background research can be found here [2] but what really took off was Uniswap's innovative use of a "Constant Function Market Maker" [3]. This allows average individuals to provide liquidity while getting the benefits of what is normally only reserved for high frequency traders. I believe that an institutional grade AMM program would be greatly democratizing for the industry.

[1] https://en.wikipedia.org/wiki/Arizona_Stock_Exchange [2] http://reports-archive.adm.cs.cmu.edu/anon/2012/CMU-CS-12-12... [3] https://medium.com/bollinger-investment-group/constant-funct...

Re: The Long-Term Stock Exchange Opens for Business

#245

Post by vmception »

alasdair_ wrote: post #224
vmception wrote: post #167

Earlier quoted context omitted.

Disclaimer: I can take any side of the regulatory pendulum with a straight face, and that also means pointing out accurate statements with no real opinion on either. Buybacks were illegal because it falsely showed demand in the market. False demand is a key point in modern market manipulation and fraud cases. Given that reality dissolved 30 years ago, of course we are all familiar with the arguments "It’s anti-diluti…

My understanding is that stock buybacks are generally better than issuing a dividend for the simple reason that with a buyback, an owner can choose to sell (and incur a taxable event) or not sell, while with a dividend the taxable event is forced upon them.

A convenient reality as they can also just be used to constrict the supply of shares on market more and more, which is what they do. How also convenient that it can result in gains much more amplified than dividends.

Yes, your observation is also true. But lets not pretend companies were really trying to choose between dividends and buybacks, most don't do dividends and ultimately never return capital to shareholders, which is the point of stock: to act as a conduit in sharing earnings.

Re: The Long-Term Stock Exchange Opens for Business

#247

Post by jovial_cavalier »

Are there any incentive systems in place to ensure that companies being traded on your exchange don't take part in these destructive practices, or is it simply that they agreed to your policies?

If it's the latter, I don't see why a company would opt to be traded on your exchange if they get literally nothing in return other than good boy points.

I also don't understand why this is a problem you are tackling at the exchange level if you aren't changing how the exchange works.

Re: The Long-Term Stock Exchange Opens for Business

#248

Post by eries »

baccredited wrote: post #236

Many private companies are staying private for longer, with an average time from launch to IPO creeping up toward 10 years or more. Most unaccredited investors are missing all of those substantial early gains. Does LTSE have any plans to help speed the path to IPO and let more unaccredited investors participate in early growth and success?

It is my hope that we will be able to reverse this trend by making the experience of being a public company dramatically better. It will take time to see this play out, just as it has taken time for us to get into this mess.

But in the long run, it's important that the broad public be allowed to participate in growth investments, and I think the public markets could once again be the best place to enable that to happen. Frankly, I think it's immoral that at a time in history when we are pushing more and more of the responsibility for people's retirement onto individual savers, we have also made it illegal for them to make most growth investments. If we don't correct this imbalance, I fear the backlash to tech will only worse and intensify.

Tech didn't cause this problem but we will bear the brunt of the backlash if people feel left behind.

Re: The Long-Term Stock Exchange Opens for Business

#249

Post by mlyle »

centimeter wrote: post #238
specialist wrote: post #152

Congratulations. "We shape our buildings; thereafter they shape us." -- Winston Churchill Though I barely understand such things, I'm very excited by your LTSE and Katsuyama's Investors Exchange (IEX). Listening to your interviews about LTSE, my takeaway is that your goal is to allow companies to be judged on their own merits, instead of someone else's. So one side effect may be to help migrate private equity funded…

> I hope others see that our markets are designed. They are human artifacts. They are not natural laws to be accepted as-is. “Markets” are not the same thing as “the market”. Markets are human artifacts; the market is an emergent behavior. It’s governed by laws beyond our control as surely as the behavior of materials are governed by thermodynamics. If the behavior of your markets fails to match the reality of the ma…

"The market" hardly exists in a bubble entirely outside of human sentiment and human institutions.

Human institutions; the prevailing ways that capital moves; legal institutions; customary behaviors, mores, etc, all have a profound impact on not just markets but also The Market (tm). The edifices we create are important.

Re: The Long-Term Stock Exchange Opens for Business

#250

Post by eries »

peterthehacker wrote: post #239

Congrats! I agree that this is a very important problem to solve. Can you elaborate on some of the specifics of how LTSE will incentive investors to think long-term? I’m imagining some strict trading frequency limits. Like an inventor can only trade a specific stock once a year. Do I have the right idea?

No, what you are describing is not currently legal in the US. We have to allow the stocks listed on LTSE to trade freely across the entire "National Market System" which includes dark pools and incumbent legacy exchanges.

So in order to solve this problem we have to start with corporate governance. Remember, though, that shares of stock are not actually commodities. They are contracts and the rights and responsibilities of stockholding emanate from the corporate charter. So as we are able to encode protections and requirements there, they will follow the stock wherever it trades.

Through this mechanism, much reform is possible both today and in the future.

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