Sox threatens new venture market

Author: Danielle Myles | Published: 3 Jun 2011

Stringent Sarbanes-Oxley (Sox) requirements will be the biggest challenge to the success of Nasdaq’s recently announced BX venture market.

The new listing venue, approved this month by the Securities and Exchange Commission (SEC) is intended to bridge the gap between the national exchanges and over-the-counter (OTC) markets in a manner similar to Toronto’s TSX Venture Exchange.

It’s hoped to attract growing companies that don’t meet the quantitative listing requirements for Nasdaq and the NYSE. But costly and time-consuming compliance and corporate governance requirements imposed on public companies by Sox could deter these companies from listing on the new market.

“Listed companies are still going to have all of the costs associated with being a public company and complying with many aspects of Sarbanes-Oxley, but...