Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

cbsnews.com

Post reply on HN
Print view View original

381–390 of 493 posts

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

#381

Post by dang »

lupusreal wrote: post #315
crowcroft wrote: post #64

Earlier quoted context omitted.

I don't think the NYSE had any DEI requirements, but the NASDAQ created a rule where boards needed some minority representation in order to be listed. That rule was challenged and overturned in court though. > On August 6, 2021, the SEC approved Nasdaq’s proposed diversity rule for companies listed on its exchange. The rule required Nasdaq-listed companies to (1) publicly disclose board-level demographic data annuall…

Sounds illegal, no wonder the courts tossed it.

This is off topic but I wanted to make sure that you see https://news.ycombinator.com/item?id=45522422 since the thread is a day old at this point.

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

#382

Post by hobobaggins »

sgc wrote: post #250
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 rather see an exchange that requires buyers to hold their shares for at least x days or weeks, and slow everything way down so that people are actually forced to make decisions based on fundamentals rather than trading based on jitters in market movement. Then the datacenter location is almost irrelevant.

If that's what you want, then just hold. The beauty of capitalism is that nobody's forcing you to buy or sell.

Be a Warren Buffet and buy for keeps, and obviously you can do very well for yourself if you choose wisely.

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

#383

Post by hobobaggins »

ohples wrote: post #231
tomrod wrote: post #223

Earlier quoted context omitted.

All true. Texas worker environment is not great though. Folks typically list income tax as an advantage but property and sales taxes more than make up the difference. Also, govt admin is fairly hostile to any infrastructure expansion, preferring to let the local car dealers buy new town charters with no infrastructure. Environmental regs are not well managed generally. Anyhow, not the worst state, not the best. Prett…

> preferring to let the local car dealers buy new town charters with no infrastructure. I'm curious what this is referring to.

.. and why it's even a problem.

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

#384

Post by sheepscreek »

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 think the ‘Texas’ part in the TXSE is mainly from a business procurement pov. They’re hoping to capitalize on the recent growth in the area, which is possibly ripe for a lot of new listings. The actual electronic trading might still originate in NJ.

I don’t believe they’ll have a floor. I think they are going the NASDAQ route, unless I’m confusing them with Long Term Stock Exchange (I was researching both around the same time).

Take the above with a heap of salt. It’s part my intuition and part things I might have read on the internet (including their corporate site).

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

#385

Post by hobobaggins »

tomrod wrote: post #223
CGMthrowaway wrote: post #213

Earlier quoted context omitted.

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…

All true. Texas worker environment is not great though. Folks typically list income tax as an advantage but property and sales taxes more than make up the difference. Also, govt admin is fairly hostile to any infrastructure expansion, preferring to let the local car dealers buy new town charters with no infrastructure. Environmental regs are not well managed generally. Anyhow, not the worst state, not the best. Prett…

You can always move somewhere else. It's a big country with different state laws for every type of preference.

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

#386

Post by barchar »

usefulcat wrote: post #219
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…

> 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 t…

You could force companies to provide standing orders to sell unlimited shares at a price selected when they go public, and one they're unlikely to go below.

This would happily also eliminate price speculation entirely. The price would just be whatever the price is and most returns would come from dividends. Would require a bunch of tax and regulatory changes

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

#387

Post by CyberDildonics »

resters wrote: post #336
CyberDildonics wrote: post #331

Earlier quoted context omitted.

the better our discovery gets The better the computers hooked directly into the exchange get you mean.

All participants contribute to price discovery. A nanosecond order book helps with price discovery the deeper it is, regardless of whether orders clear. > The better the computers hooked directly into the exchange get you mean. I think you're trolling with this one. But you had an advantage typing your comment into a web browser compared to all the people who wrote theirs on paper and put it in an envelope with a sta…

A nanosecond order book helps with price discovery the deeper it is, regardless of whether orders clear.

This is a claim, it is not being backed up by evidence.

I think you're trolling with this one. But you had an advantage typing your comment into a web browser compared to all the people who wrote theirs on paper and put it in an envelope with a stamp.

This analogy doesn't make any sense. Why would a person care about nanosecond price discovery? The only benefit is for whoever controls the computers that are able to do it and profit off of it.

If that's not true then why are these firms paying so much money to have nanosecond advantages?

Why do people doing normal trading want to avoid the exchanges that have HFT computers skimming money off their trades?

There is no mutual benefit here. If there was you would be able to explain it clearly and with evidence instead of just making claims about 'price discovery'.

The price is going to get discovered either way just as it has for hundreds of years, it happening a billion times per second does normal traders no good.

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

#388

Post by fuzzfactor »

CGMthrowaway wrote: post #213
kasey_junk wrote: post #90

Earlier quoted context omitted.

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…

>This isn’t a zero-sum game where Texas grows at New York’s expense.

Not at all.

New York is standing to gain quite a bit.

>TXSE was backed by wealth management giant BlackRock and market maker Citadel Securities, among other firms.

>The Texas company said in June 2024 that it raised a total of $120 million from more than two dozen investors.

Ever heard of "The Texas Company" from 100 years ago when they first discovered huge gushing oil wells in Beaumont? Popularly known as Texaco, it was of course, a New York company.

Go back before 1837 and Houston itself was unpopulated ranchland while San Antonio and El Paso were well-established western towns.

Until New York investors bought the ranch and built the planned industrial community we know today.

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

#389

Post by usefulcat »

hn_acc1 wrote: post #333
Fade_Dance wrote: post #309

Earlier quoted context omitted.

>How does that hurt me? Because lit orders get front run. Every sophisticated participant/algo is exceptionally efficient at extracting money from less sophisticated participants. As someone who trades decent volume but doesn't have a fully institutional grade workflow, I have the fortune of dealing with this... Simple lit orders (posting an order directly to an exchange) will be taking advantage of by both market ma…

I gotta say.. I'm way out of my depth on that one. As a guy who's mostly put some 401K $$ into index funds, and has the odd RSU/ESPP stock to sell - will any of these be an issue when I sell some of them later? I've only sold ESPP stock via "at this price" when I had a large enough number, and "at market" when not - but it's been in the hundreds of shares at most. May have a few thousand shares of my current employer…

It depends on how thinly traded the stock is. Unless it's very thinly traded or you trade it after hours you'll almost certainly be completely fine. Like if you're talking about something heavily traded like a FAANG, you could probably dump several thousand shares pretty much any time during regular trading hours and have little or no effect on the price. Certainly not enough to be worth caring about for a one time transaction. OTOH if you're running some trading algo that does that kind of transaction thousands of times a day (or more) every day, then that would be a very different story.

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

#390

Post by CyberDildonics »

JumpCrisscross wrote: post #335
CyberDildonics wrote: post #329

Earlier quoted context omitted.

Not so much if the submitted prices are hidden until the matches are resolved.

> Not so much if the submitted prices are hidden until the matches are resolved Except every other exchange is still revolving. The only way to implement this is to eliminate competition between exchanges. Also, Wall Street would love this. The more of the order book you submitted, the more information you have about its composition.

The only way to implement this is to eliminate competition between exchanges.

There are two different things being talked about here.

Trading based on arbitrage between exchanges will happen in one way or another no matter what.

Trading millions of times per second automatically on the same exchange when some people have low latency computers at the exchange with huge amounts of extra information is not necessary.

Also, Wall Street would love this. The more of the order book you submitted, the more information you have about its composition.

The point isn't to make something 'wall street hates' it's to make something that doesn't get money eaten away by automated computers in the middle so that it's the best option for people making trading decisions on people time scales.

Post reply on HN