The U.S. exchanges and regulators are discussing ways to reduce the regulatory burden on listed companies.

U.S. exchange operators are in talks with the U.S. Securities and Exchange Commission (SEC) to reduce the regulatory burden on listed companies to encourage more start-ups with higher valuations to go public, according to four people familiar with the matter. These negotiations involve the SEC, NASDAQ and the New York Stock Exchange. The reforms under discussion include reducing disclosure, lowering the cost of listing, and making it harder for a small number of investors to act aggressively. Negotiations have been going on for several months. Nelson Griggs, president of Nasdaq, said, "The numbers are very clear, companies are now staying privately held for longer and longer. Discussions focused on regulatory requirements that make it difficult for companies to list and maintain their listing status, people familiar with the matter said. One of the focus areas is the reform of the current proxy voting process, which requires companies to provide information to shareholders so that they can vote on various matters. The reforms will make it more difficult for aggressive shareholders with small stakes to launch proxy voting battles and discourage a small number of investors from submitting proposals repeatedly. They added that the move would also reduce the burden of disclosure in the initial proxy filing.