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SEC approves Texas Stock Exchange, first new US integrated exchange in decades

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Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#11

Post by chronic74939 »

viraptor wrote: post #3

> world-class exchange rooted in alignment Does this actually mean something specific?

> Does this actually mean something specific?

Probably:

Trade matching algorithms (prorata, FIFO, TOP) and rules (capital requirements, market impact definitions) will align with the interests of the most profitable customers.

Citadel Securities, with their HFT-level returns of 50-100% per year will not venture into a losing business.

Note, CitSec is different from Citadel (hedge fund), and the hedge fund is also crazy with 40% annual return before fees (past 20 years) and 19% after fees to the outside passive investor.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#12

Post by 1659447091 »

3D30497420 wrote: post #5

This reads like a press release. Here's an article that appears to provide a bit more perspective: https://www.reuters.com/legal/government/txse-says-sec-appro... Also, this is a fun nugget from the Reuters article about this new exchange providing competition to NYSE and NASDAQ: > But those rivals are not sitting idly by. On March 31, the NYSE opened its own Texas outpost, disclosing that Trump Media & Technology wo…

Adding another source from the Texas Tribune I posted a day or two ago but never gained interest

https://www.texastribune.org/2025/10/06/texas-stock-exchange...

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#13

Post by SkipperCat »

The Miami stock exchange (MIAX) has their matching engines colocated in Equinix's NY4 data center in Secaucus NJ, much like many other exchanges. I would not be surprised if TXSE does the same.

Many trading firms already have their trading engines in that data center and I would assume TXSE would want quick access to that order flow and this might be easier if they are in NY4.

Of course, they may want to have their colo facilities in TX in their own data center, that way they can rent out space and make some extra revenue, but then they'd have to build that out.

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#19

Post by raverbashing »

tcbawo wrote: post #4

Is there anything interesting or novel about this exchange, other than its headquarters are located in Texas? From what I can tell, the primary data centers will be in New Jersey like all the others.

Ah so no timing arbitrage in finding a place in Tennessee where data arrives from both places milliseconds apart and you can explore minor differences in pricing

Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades

#20

Post by no_circuit »

tcbawo wrote: post #4

Is there anything interesting or novel about this exchange, other than its headquarters are located in Texas? From what I can tell, the primary data centers will be in New Jersey like all the others.

Yes, from https://www.txse.com/solutions:

  TXSE's goal is to provide greater alignment with issuers and investors and address the high cost of going and staying public.
The alignment part translates IMO to avoiding political / social science policy issues like avoiding affirmative action listing requirements like the Nasdaq Board Diversity Rules that was just recently repealed: https://corpgov.law.harvard.edu/2025/01/12/fifth-circuit-vac....

So it is as one might imagine, the formation was probably for similar reasons why owners are moving their company registration out of Delaware.

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