Cowen Outlines Proposed Recommendations To Improve Small Cap Ecosystem
its President,
at the
Committee
Companies, and the Declining Number of Initial Public Offerings”
and provided an overview of his observations and recommendations to
improve the small cap ecosystem. Mr. Solomon, a vocal advocate in
support of small company capital formation, is co-chair of the
Capital Formation (ECF) Task Force
from across the country’s startup and small-capitalization company
ecosystems.
During the panel discussion, Mr. Solomon discussed the changing
landscape of the IPO marketplace and its potential impact on capital
market formation. Mr. Solomon reiterated his belief that the current
decline in the number of small cap IPOs is not the result of only one
factor, but rather the result of many factors affecting market
participants for Emerging Growth Companies (ECGs). His insight focused
on individual and institutional investors, investment banks and issuers
and how each of these individual groups has evolved over the past few
decades.
“We have the biggest and best capital market in the world, however, we
need to address some of the concerns regarding the decline in small cap
IPOs so the U.S. doesn’t lose its edge if issuers are forced to migrate
to other global marketplaces,” said
Cowen.
Mr. Solomon also discussed the potential impact that upcoming MiFID II
regulation may have on U.S. capital market formation and possible
economic outcomes and unintended consequences that could result when
asset managers are required to document and justify their research
spending and separate payment for research from execution payments under
the proposed MiFID II directives.
Mr. Solomon concluded his presentation by providing specific
recommendations to improve the small cap ecosystem for capital providers
(individual and institutional investors), investment banks and issuers,
including proposed regulatory and compliance modifications.
Click here
for a copy of Mr. Solomon’s
Along with Mr. Solomon, other members of the
included:
Associate Professor,
Americas IPO Markets Leader, E&Y, and;
Partner, Andreesen Horowitz.
About
the Dodd-Frank Act to advise the
regulation of securities products, trading strategies, fee structures,
the effectiveness of disclosure, and on initiatives to protect investor
interests and to promote investor confidence and the integrity of the
securities marketplace. More information regarding the
Investor Advisory Committee
About
its consolidated subsidiaries, provides alternative asset management,
investment banking, research, sales and trading and prime brokerage
services through its two business segments:
and its affiliates make up the Company’s alternative investment segment,
while
make up the Company’s broker-dealer segment.
provides alternative asset management solutions to a global client base
and manages a significant portion of Cowen’s proprietary capital.
and Company
for growth-oriented companies, domain knowledge-driven research, a sales
and trading platform for institutional investors and a comprehensive
suite of prime brokerage services. Founded in 1918, the firm is
headquartered in
information, visit www.cowen.com.
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Source:
Cowen Inc.
Lynda Caravello,646-562-1676
lynda.caravello@cowen.com
or
Gagnier
Communications
Dan Gagnier,646-569-5897
dg@gagnierfc.com