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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

#211

Post by landl0rd »

ecshafer wrote: post #94
avgDev wrote: post #77

Earlier quoted context omitted.

"There have been 263 power outages across Texas since 2019, more than any other state, each lasting an average of 160 minutes and impacting an estimated average of 172,000 Texans, according to an analysis by electricity retailer Payless Power ( https://paylesspower.com/blog/blackout-tracker/ )" Also in 2021 210 people died. This is a huge deal. This wasn't just a little outage.

That website shows California as currently worse. It looks like Larger states just have more power outages, which is to be expected. Texas also is a weird state that is very large it gets Tornadoes, extreme heat, and hurricanes, while also having several very large metro areas in it. There also isn't anything indicated differences in grid monitoring, are all grids (like large rural grids) monitored to the same levels…

We also have a lot more growth in the past few years than most other places, both in relative terms, and in absolute (big state + high growth introduces more absolute friction than small state). Demand is forecast to rise over 20% from 2024 levels vs. an American average under 5%: https://www.eia.gov/todayinenergy/images/2025.07.31/main.svg

We have high power demand in both winter and summer: in the latter, air conditioners use a lot; in the former, about half of Texans heat with electricity because we have less cold and so less usage of cost-effective, grid-preserving furnaces.

Texas has been building a ton of wind and solar to supplement generation capacity and is taking some leadership in the next-gen nuclear stuff for a reliable base load, but in the mean time the shortage of CCGTs is going to bite in a state where demand goes up this much, this fast. SB6 passed this summer also should help with reasonable control and oversight.

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

#212

Post by scottydelta »

chronic74939 wrote: post #208
scottydelta wrote: post #28

Well we wait for TXSE to do IPO and get listed in NYSE/NASDAQ and then we buy TXSE since house always wins.

> since house always wins. House doesn’t always share with outside investors

The owners of the house can’t wait for their cash cow to grow up and print money so they will take it public and cash out with promise for future returns. This is a game as old as capitalism.

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

#213

Post by CGMthrowaway »

kasey_junk wrote: post #90
javier123454321 wrote: post #89

Pardon my ignorance but can anyone can help me figure out what does it mean to have a new stock exchange? Dont exchanges sell the same stocks? Is it just a way to earn some fees by capturing some of the trades in their platform? I'll obviously google it now but I'd appreciate some insight.

Each exchange can make its own rules for what it will list and how it will trade (within the broader SEC regulations). So yes it’s just a way to capture fees from listers who like your exchange better as the primary listing exchange and from market participants that must be in every exchange (latency sensitive HFT). None of the many exchanges that have started have made a dent in the existing duopoly for real share l…

So in other words, healthy competition, and may the best man win. Contrary to many comments this is more than political reaction/posturing.

The state of Texas is the world's 8th largest GDP and a diverse one, with no one sector exceeding 9%. Texas is well-positioned relative to NYC for attention around AI, as it is not geographically constrained and has an energy advantage. There is financial credibility built in as 10% of NYSE listings are already HQ'd in Texas. And Texas has a pro-business regulatory environment.

This isn’t a zero-sum game where Texas grows at New York’s expense. The hope is it creates a larger, more dynamic market.

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

#214

Post by dylan604 »

darksaints wrote: post #143
sjm-lbm wrote: post #106

Earlier quoted context omitted.

Is this true though? Texas has had some well-publicized failures (well, really one major one), but as best as I can tell they are more or less middle of the pack on grid reliability[1]. I mean, you'll need a backup generator anywhere, but the report I found (admittedly with just a bit of googling) makes it seem like Texas is a better potential location than quite a few states (including California). [1] - https://www…

The really major one is the only one that matters. If you are running a datacenter that needs to always be up and running, you're going to need backup power. A power grid that goes down once a decade for multiple weeks is far worse than one that goes down for 5 minutes once a week.

In Texas, if you support those in power with good enough donations, you can ensure that your site does not loose power when the decision is made on who to disconnect. So you can spend the money on back up power equipment, or in donations. Either way, it's going to cost to play.

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

#215

Post by valkmit »

AaronM wrote: post #180
robocat wrote: post #130

Earlier quoted context omitted.

> I would assume TXSE would want quick access to that order flow Perhaps Texas could use a different trading model that doesn't require ultra high speed trading. Matt Levine often mulls the idea of a system with a trading window that doesn't let the fastest connection to the order book win. Perhaps an order book that works at human speeds so humans can trade too (I can think of a few ways to do it - but would need mo…

If trades were batch processed say every 5 seconds, and randomized in the case of ties would that solve the fastest connection issue?

Also it just changes the nature of the game. There's no incentive to interact with the batch until the absolute last microsecond. It will still be dominated by latency-sensitive participants, just in a manner where the difference between visible liquidity and latent liquidity is even more diverged from reality (on average).

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

#216

Post by landl0rd »

lgregg wrote: post #162
leetharris wrote: post #82

Earlier quoted context omitted.

What you talked about is not a Texas grid problem, but a local problem. The Texas grid itself is very reliable. > Also in 2021 210 people died. This is a huge deal. This wasn't just a little outage. Yes, a rare storm knocked out power and people died. It is a big deal and a lot of things changed after the event. But I want to put it into perspective. In 2024, ~62,800 people in Europe died to heat-related events.

Yeah, but that isn't really an apples to apples comparison. Texas for example had ~400 heat deaths in 2024 depending on where you look but in 2023 it was 334 or 563 depending on your criteria [1]. >But I want to put it into perspective. In 2024, ~62,800 people in Europe died to heat-related events. Most of these deaths are not because of electrification but the fact that homes are built out of bricks and mortar and b…

It's a perfect apples-to-apples comparison if you level accusations of grid incompetence at Texas. Should all those EU homes suddenly go out and buy AC, EU power grids would have to enact massive load shedding during heat waves. Such waves already push demand up, causing local blackouts and price spikes: https://www.ft.com/content/23b3dc59-b40f-48e2-ad93-e301de7ac...

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

#217

Post by dylan604 »

sleepyguy wrote: post #107
ToucanLoucan wrote: post #50

Earlier quoted context omitted.

[flagged]

Yeah, Oncor isn’t great. They do just enough to keep the lights on for regular customers. But I’m pretty sure large data centers negotiate a higher level of service and purchase power at discounted rates. FB, for example, has a massive data center in the Alliance corridor — check out the link. Those trailer-sized units you see along the outside of the building are enormous diesel or natural gas generators — more than…

Each building has 2 large fuel tanks which is where I was expecting to see a fault in the plan. I wonder how redundant the fuel supply is. If building 1 is the only one on generator power and the fuel tanks start to run low, can they easily route more fuel from another building's tanks? Just how paranoid were they with the design?

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

#218

Post by htareque »

dr-smooth wrote: post #170
ddtaylor wrote: post #126

Earlier quoted context omitted.

Is this saying it was "hours away" and safe or "hours away" and nearly missed a disaster? I assume the latter.

reminds me of "you can't put too much water in a nuclear reactor" from SNL...

For the curious: https://archive.org/details/saturday-night-live-s-10-e-06-ed... @ 53:42

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

#219

Post by usefulcat »

robocat wrote: post #130
SkipperCat wrote: post #13

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 c…

> I would assume TXSE would want quick access to that order flow Perhaps Texas could use a different trading model that doesn't require ultra high speed trading. Matt Levine often mulls the idea of a system with a trading window that doesn't let the fastest connection to the order book win. Perhaps an order book that works at human speeds so humans can trade too (I can think of a few ways to do it - but would need mo…

> Perhaps Texas could use a different trading model that doesn't require ultra high speed trading.

What would that look like? Periodic auctions? Certainly it could be done, I'm just trying to understand what problem might be solved, and whether the solution would be effective.

For example, even with the opening and closing auctions we have today, there can be an advantage to getting your order accepted right before the deadline. Some participants do this, most don't really (depending on the exact definition of "right before"). But the fact that some do tells me that some participants would do the same thing with periodic auctions, and at least for them latency would still be important.

If, as seems likely, latency is fundamentally important to at least some styles of trading, how do you incentivize participants to not value it?

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

#220

Post by eflim »

javier123454321 wrote: post #89

Pardon my ignorance but can anyone can help me figure out what does it mean to have a new stock exchange? Dont exchanges sell the same stocks? Is it just a way to earn some fees by capturing some of the trades in their platform? I'll obviously google it now but I'd appreciate some insight.

Mostly yes, but a more optimistic (if naive) perspective is that the exchange wants to bring something new and valuable to the market. There are tons of little rules on exchanges about how stocks trade, and these can affect the amount of stocks and prices of stocks that different investors are able to get. These rules (often called microstructure) are partially determined by law, but there's differentiation between exchanges, and so one of the things a new exchange can do is introduce different rules that might make the market more "fair" depending how you define that.
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