The two stock exchanges are proposing letting companies raise capital through direct listings instead of initial public offerings (IPO). The NYSE proposal would allow direct listings at a minimum of US$250 million. The Nasdaq will suggest its own proposal in the coming weeks. (Financial Times)

Talking point: Both exchanges are facing pressure from startups and venture capitalists questioning the traditional IPO model, which often comes with higher fees. Last month, at least 100 firms attended a conference on direct listings. Spotify and Slack have both gone the direct-listing route in the past two years, and Airbnb is planning to do the same. There are a limited number of large firms looking to go public, and the Nasdaq and NYSE are already competing for them. In a statement, the Nasdaq said NYSE’s proposal did not “fully consider the complexity of the issue.”