all the incentives of the companies listing, and existing holders, are aligned to long term
Are they? In what way?
The only difference from a normal exchange appears to be that companies are "required to publish a series of policies". Why wouldn't that incentivize saying "the right things" in those policies but then otherwise behaving exactly the same as companies listed on a normal exchange?
it sounds like voting power is tied to how long you've held
This is not actually a requirement for companies listed on the LTSE, but even if every company implemented it, in practice surely shareholder voting power has negligible influence on company management compared to share price incentives?
I am a business that wishes to focus on the short term; why would I list there?
I am a customer that wishes to focus on the short term; why would I buy there?
It's not a requirement. It likely doesn't need to be a requirement. The point is, investors and companies both have options; why would they pick the one that is misaligned with them, even if it's just in intention? Starting out there's no reason to (no critical mass to make it worth investing in), and if it picks up traction there'd be no reason to either, because now the incumbent companies, and their stockholders, are already aligned to long term thinking due to their being the only ones inclined to invest initially.
Are they? In what way?
The only difference from a normal exchange appears to be that companies are "required to publish a series of policies". Why wouldn't that incentivize saying "the right things" in those policies but then otherwise behaving exactly the same as companies listed on a normal exchange?
it sounds like voting power is tied to how long you've held
This is not actually a requirement for companies listed on the LTSE, but even if every company implemented it, in practice surely shareholder voting power has negligible influence on company management compared to share price incentives?