The Jumpstart Our Business Startups Act (JOBS Act)--enacted in 2012 for implementation in 2013--is in the midst of transforming the capital markets with a series of funclraising and disclosure changes. At the center of the issues is David A. Ethridge, senior vice president and head of the capital markets group at NYSE Euronext. In his position, Ethridge is responsible for NYSE Euronext's capital markets business, including the coordination of initial public offerings (IPOs). Ethridge also is responsible for the Big Board's listed companies in China. Much of his career focused on advising companies on their IPO plans, Prior to joining NYSE Euronext, he worked for 20 years in global banking firms developing strategic and capital-raising plans for corporate clients across industries.
Ethridge talks with Financial Executive's Editor-in-Chief about aspects of the JOBS Act and its potential to transform U.S. capital raising and the capital markets.
Financial Executive: This seems to be a busy time for capital raising. What is currently dominating your time?
David Ethridge: Most of my time is spent running around the country and the world talking to management leams about why they should list their IPO on the New York Stock Exchange versus our competitors in the U.S. and abroad.
Also, as part of my responsibilities, I spend a lot of time with the venture capital and private equity communities. That includes the banking, accounting, legal community and anyone around the IPO process. I also get involved in some of our work in Washington, D.C., where we're helping our listed companies in areas related to the administration and policy.
That's how I got involved with the JOBS Act and worked to shape the legislation that got put in place. The NYSE advised the task force that had come out of the work in Washington regarding the JOBS Act and we are very happy about seeing that legislation get put in place.
So, as a bit of a disclaimer for questions about the IOBS Act: Obviously, I'm going to be positively biased.
FE: How would you describe the IPO pipeline this year and what do you expect in 2014?
Ethridge: So far this year we've had what I'm calling a kind of "Goldilocks market," where it has not been too hot and it has not been too cold. It has just been kind of just right. Earlier this year there were no big macro issues that could interrupt activity. Everybody wants to play the wait-and see game of "Well, let's not launch. Let's wait and see what...