Yesterday, June 12, 2013, the House Subcommittee on Capital Markets and GSEs held a hearing on “Reducing Barriers to Capital Formation.”  The prepared testimony for the hearing is available at:  The Subcommittee noted that there are a number of regulatory obstacles to capital formation that continue to burden smaller companies, and focused on proposals that might facilitate capital formation by smaller companies.  In addition to various calls for the SEC to complete its JOBS Act-related rulemaking, there were a number of issues that were suggested for consideration, including changing the minimum trading increment or “tick size” for smaller companies; authorizing the creation of new equity markets to register with the SEC and then list and trade the securities of smaller companies; modernizing the regulatory structure of business development companies; improving capital formation for privately held small businesses and publicly traded companies with less than $250 million in public market capitalization.