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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

#391

Post by Spooky23 »

jjk166 wrote: post #95
Spooky23 wrote: post #41

Earlier quoted context omitted.

People online like to yak about the woke nonsense. Reality is there are tax and regulatory advantages. The courts are setup in a way that is favorable to business. They read a very strict interpretation of contracts which is good in some scenarios. Texas politics is a train wreck, but their bureaucracy is pretty good for a business - things like permitting and other regulatory processes are faster. They also will fir…

> Reality is there are tax and regulatory advantages. The courts are setup in a way that is favorable to business. They read a very strict interpretation of contracts which is good in some scenarios. > Texas politics is a train wreck, but their bureaucracy is pretty good for a business - things like permitting and other regulatory processes are faster. They also will firehouse you with incentives. None of that is rea…

You are correct, mea culpa.

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

#392

Post by Razengan »

UltraSane wrote: post #362
Razengan wrote: post #355

Earlier quoted context omitted.

hah someone finally said it. The financial market or whatever the f it's called has become a Monty Python sketch. Like those "pro" StarCraft gamers that keep randomly clicking their mouse for no reason except to keep their APM counter high.

Notice how no one actually has a good reason for why shares should be bought and sold in milliseconds?

But well, you see, the mArKeT..

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

#393

Post by missingcolours »

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…

As a concrete example, Nasdaq had a rule requiring boards of directors to have a certain amount of "diversity".

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

#394

Post by tomrod »

hobobaggins wrote: post #385
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…

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

What a strange thing to say - - "sucks to be you if you don't like it, just leave" is not really how I'd expect people to have a conversation around identified policy gaps, especially among people that aren't there.

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

#395

Post by tomrod »

hobobaggins wrote: post #383
ohples wrote: post #231

Earlier quoted context omitted.

> 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.

"Good ole boy network" is real!

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

#396

Post by ThinkBeat »

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…

They could buffer a 2 second window and randomise the orders of the transactions.

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

#397

Post by UltraSane »

Razengan wrote: post #392
UltraSane wrote: post #362

Earlier quoted context omitted.

Notice how no one actually has a good reason for why shares should be bought and sold in milliseconds?

But well, you see, the mArKeT..

and lIqUiDiTy!

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

#398

Post by KPGv2 »

anonu wrote: post #351
UltraSane wrote: post #263

Earlier quoted context omitted.

There is no reason why shares should be bought on sold in time frames far too short for anything to have meaningfully changed about the companies or market conditions.

This is the free market speaking. If there was one exchange there would be ~no~ less latency arbitrage. But there are many... Which creates a competitive landscape and reduces fees for investors. The by product is you have many HFTs that come in to take advantage of mispricings, even if they are on sub millisecond scales. It doesn't harm the company or the investor. Its quite the opposite... Investors benefit from co…

One other aspect of HFT that is good for the general investor is that HFT injects liquidity, making it easier for a general investor to liquidate their position, which is a desirable thing for human traders. HFT does not magically make human investors engage in more or less speculative behavior.

HFT is an easy thing to attack, but I've never encountered a lucid argument for why it's bad. "It's not fair that I'm not as fast" isn't really a reason unless you explain why removing liquidity (i.e., making it harder for you to find a buyer at your price point), paired with you moving up the "trading swiftness" rankings, is preferable.

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

#399

Post by jraby3 »

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…

As someone who's considered taking my company public (not a tech company) it's nice to see easier listing requirements on this exchange than the big ones.

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

#400

Post by KPGv2 »

CyberDildonics wrote: post #331
resters wrote: post #325

Earlier quoted context omitted.

The behavior of other participants is itself a first-class signal. Rule 611 compresses that signal. By forcing everything to orbit a size-agnostic NBBO, it collapses a lot of the “behavioral bandwidth” (depth, imbalance, sweep patterns, replenishment, cancel/replace cadence) into a single top-of-book tick. Less resolution, less information. High-resolution flow tells you who wants what, at what size, and how urgently…

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

> The better the computers hooked directly into the exchange get you mean.

I need you to understand that HFT makes decisions based on human-defined parameters. It's not AI-driven. What's the difference between a human saying "these are my parameters, now CPU, go trade based off those" versus "these are my parameters, now underling, go trade based off those"

the only difference is speed, plus i suppose those underlings might suck at following their boss's directives compared to a computer

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