Apr 12, 2017
Local Stock Exchanges with John Katovich and Amy
Are local stock exchanges the answer to the local
investing question? Learn why the answer is likely no.
John Katovich of Cutting Edge
Capital takes us on a journey starting from high hopes around local
stock exchanges to the hard truth about the challenges –
understanding this topic is central to finding the right answers to
the question of local investing liquidity.
In this episode you’ll learn:
- Why a
local stock market is probably not the answer to the local
investing liquidity question
regulations around investor protections have to be taken into
our current stock market is not the same as it was in 1940. (In
1940 investors held stocks held stocks for an average of 7 years,
by 2007 that was down to 7 months)
high frequency trading is transforming the stock market, shifting
transaction time to as low as 11 seconds
an exchange would not work economically if it needed to make money
or be self-sustaining.
a “market maker” is.
some oversight is critical, how to verify companies, and select
which companies should be listed.
- Whether a general “bulletin board” would
is “speculation” and “arbitrage”.
difference between an ATS and an exchange.
nonprofits could participate in the sale of securities. A
non-profit could operate at ATS, as long as it operates under a
charter that allows it to regulate the market of the postings
(buy/sell) and assumes the responsibility of broker
Amy Pearl, Hatch
John Katovich, Founder and
Principal, Cutting Edge Capital
Cutting Edge Capital
What is an Alternative Trading System (ATS)?
SEC Announcement of adoption of new ATS Rules
Article: “Shining a Light on Dark