SIFMA: How to preserve vitality of public markets
24 May 2018 Washington DC
Image: Shutterstock
Brett Paschke, head of equity capital markets at investment bank at William Blair, has testified on behalf of the US’s Securities Industry and Financial Markets Association (SIFMA).
Paschke gave his testimony to the House Financial Services Subcommittee on Capital Markets, Securities and Investments at a hearing entitled ’Legislative Proposals to Help Fuel Capital and Growth on Main Street’.
SIFMA said in a 10-page note, which it published afterwards, that the testimony outlined several recommendations for preserving the vitality of the country’s public capital markets.
SIFMA added that it and a broad coalition joined together recently to produce a report called Expanding the On-Ramp: Recommendations to Help More Companies Go and Stay Public.
The report detailed a number of ideas to increase the attractiveness of public markets for issuers.
SIFMA said it believes that the report balances the need to streamline issuer obligations with a recognition that investor confidence is a critical component to the vibrancy of public capital markets.
Paschke said: “On the capital markets side of our business [...] we [SIFMA] are best known for serving the needs of small and mid-cap growth companies, including many innovative leaders in technology, healthcare and life sciences.”
“Over the last 10 years, we have been an underwriter on approximately 20 percent of all US-listed initial public offerings. We provide sell-side research for over 600 public companies, we are an active market maker in over 3,600 stocks, and our institutional sales force covers many of the world’s leading growth stock investors”, he added.
SIFMA’s testimony focused on lengthening what it describes as the “on-ramp” for emerging growth companies, by expanding the ability of companies to take advantage of scaled reporting and confidential filing provisions.
The testimony also planned to expand the “testing the waters” provision of the JOBS Act (more fully known as the JumpStart Our Business Startups Act) to all issuers so that all would-be issuers are able to gauge investor interest ahead of an offering.
Paschke, in the conclusion to his testimony, said: “Policymakers certainly have a challenge before them—improving the vibrancy of our public markets while balancing investor protections.”
He added: “But the US capital markets are the envy of the world and worth the effort to preserve. SIFMA and its members stand ready to assist the Committee and the US Securities and Exchange Commission in this important endeavour.”
Paschke gave his testimony to the House Financial Services Subcommittee on Capital Markets, Securities and Investments at a hearing entitled ’Legislative Proposals to Help Fuel Capital and Growth on Main Street’.
SIFMA said in a 10-page note, which it published afterwards, that the testimony outlined several recommendations for preserving the vitality of the country’s public capital markets.
SIFMA added that it and a broad coalition joined together recently to produce a report called Expanding the On-Ramp: Recommendations to Help More Companies Go and Stay Public.
The report detailed a number of ideas to increase the attractiveness of public markets for issuers.
SIFMA said it believes that the report balances the need to streamline issuer obligations with a recognition that investor confidence is a critical component to the vibrancy of public capital markets.
Paschke said: “On the capital markets side of our business [...] we [SIFMA] are best known for serving the needs of small and mid-cap growth companies, including many innovative leaders in technology, healthcare and life sciences.”
“Over the last 10 years, we have been an underwriter on approximately 20 percent of all US-listed initial public offerings. We provide sell-side research for over 600 public companies, we are an active market maker in over 3,600 stocks, and our institutional sales force covers many of the world’s leading growth stock investors”, he added.
SIFMA’s testimony focused on lengthening what it describes as the “on-ramp” for emerging growth companies, by expanding the ability of companies to take advantage of scaled reporting and confidential filing provisions.
The testimony also planned to expand the “testing the waters” provision of the JOBS Act (more fully known as the JumpStart Our Business Startups Act) to all issuers so that all would-be issuers are able to gauge investor interest ahead of an offering.
Paschke, in the conclusion to his testimony, said: “Policymakers certainly have a challenge before them—improving the vibrancy of our public markets while balancing investor protections.”
He added: “But the US capital markets are the envy of the world and worth the effort to preserve. SIFMA and its members stand ready to assist the Committee and the US Securities and Exchange Commission in this important endeavour.”
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