[SAN FRANCISCO] US regulators on Friday approved a new stock exchange that is the brainchild of a Silicon Valley entrepreneur, a move that will give high-growth technology companies more options to list their shares outside of the traditional New York exchanges.

The U.S. Securities and Exchange Commission on Friday approved the creation of the Long-Term Stock Exchange, or LTSE, a Silicon Valley-based national securities exchange promoting what it says is a unique approach to governance and voting rights, while reducing short-term pressures on public companies.

The stock exchange was proposed to the SEC in November by technology entrepreneur, investor and startup adviser Eric Ries. He raised US$19 million from venture capitalists to get his idea off the ground, but approval from US regulators was necessary to launch the exchange.

Mr Ries said in a recent interview with Reuters that LTSE would allow companies to dual-list their stock on other exchanges, such as the larger New York Stock Exchange and Nasdaq. He added that companies and investors had signed letters of intent to participate in the exchange, but declined to provide details.

The new exchange says it will encourage companies to focus on long-term innovation rather than the grind of quarterly earnings reports by asking companies to do away with executive bonuses awarded for short-term accomplishments and giving shareholders more power the longer they hold the stock.

REUTERS