Texas, well known for the strength of it's financial regulation.
SEC approves Texas Stock Exchange, first new US integrated exchange in decades
201–210 of 493 posts
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#202Pardon 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…
This sounds like the sort of "norms" thing that a GOP-leaning state would abuse to circumvent SEC regulations by somehow declaring a state-owned exchange as some sort of SEZ to allow unregulated exchange between domestic and (primarily) foreign entities.
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#203Earlier quoted context omitted.
> the value of an exchange is other people are looking there when they want to buy and sell and so it would be hard to get enough traders if the company doesn't want to list with you. Doesn’t regulation NMS make this significantly less relevant? A stock trading on an exchange where it isn’t listed is going to trade at the same price as everywhere else, modulo however long it takes to arbitrate the price between the e…
I thought stocks don't trade on exchanges where they're not listed - that's what listing means, right? And most stocks are listed on one exchange.
Most (this is close, about half) stock trades are not on the listed exchange. If I sell stock and my broker has someone else wanting to buy that stock they are just going to internally match us up at the current price instead of going to the listed exchange. There are a lot of "dark pool" exchanges that brokers will check with first when someone wants to buy/sell stocks and so only rarely (again about half the time - not very rare) will they go all the way to an exchange.
Nothing stops an exchange from accepting trades for a stock that isn't listed there. (there may be local laws that say otherwise, but there are lots of different countries). However if you are not a listing exchange brokers might not think to check your exchange when someone wants to trade and so you won't get enough volume. If you are the exchange a broker checks first though you can be the exchange.
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#204Earlier quoted context omitted.
I expect a series of other choices that force the business into Texas as a way to choke out California for not bowing to the will of a king.
I hate defending his highness, but this has been in play way longer than he’s been in office.
Almost every thing happening right now involves organizations that have been making plans to do things for a very long time that is being hyper accelerated or the competitive landscape drastically distorted to give advantage.
I should be happy right now as X and Y and Z are available, some of which support some of my ideas, but I'm smart enough to know that giving me a few trinkets while screwing the system as a whole doesn't work.
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#205Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#206The 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…
why would they do that? the system is designed to reward asymmetry.
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#207Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#208Well 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
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#209Earlier quoted context omitted.
Texas loses power one time for a week and the redditors will never let it go. Wild how this is still a cringe joke so many years later.
Texas' grid was very reliable when I was growing up there. Since deregulation however, it's no longer reliable. It used to be mandated that grid facilities were overbuilt to have some headroom for emergencies. That's no longer true. Now, Texas utilities only maintain the minimum infrastructure needed for normal operations and they have no cushion if something goes wrong. Any CEO of a Texas utility that spends money b…
in many country, electric(or energy) is state company
that way any infrastructure that related to serve the citizen well being isn't exploited for profit
why US can't do this????
Re: SEC approves Texas Stock Exchange, first new US integrated exchange in decades
#210Earlier quoted context omitted.
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I know this sub thread kicked off with snark about regional grids. That said, TXSE will be located in Dallas, a T5 datacenter city. Why can't it be MORE reliable than XNYS/XNAS?
Because the powers that be in Texas will siphon off funding to make things work better to fund their own projects. "Should we winterize our power grid" Nah, it's Texas where it doesn't get that cold for that long. Should we implement a warning system in an area that is historically known for being prone to flash flooding? Nah, it doesn't happen that often and we have other things to spend money on instead.