I'll obviously google it now but I'd appreciate some insight.
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 listings that Nasdaq/nyse have. But some exchanges have made good business off of other products like etfs.
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.
Environmental regs are not well managed generally.
Anyhow, not the worst state, not the best. Pretty balanced economy, like Ohio, Illinois, California, and Georgia.
-NY state estimate $150–200M per year lost to real estate transfer tax fraud and evasion. On $3B receipts that is 5-6% breakage.
-Harris County (Houston) found $21M in improper homestead exemptions. On ~$7B receipts that is ~0.3% breakage
-Miami-Dade found $35M on $6.5B for improper homestead exemptions, 0.5% breakage
For comparison, IRS net tax gap is about 12%
No, not really. Texas is still below average state taxes and you can see the breakdown of each state here:
https://en.wikipedia.org/wiki/State_income_tax#/media/File:S...
I'm curious what this is referring to.
There are lots of stock exchanges, which have started for lots of reasons but there isn’t really much of an industry desire to be out of nyse/nasdaq for vanilla listings. If there was it would have already happened.
Seems like a publicity stunt to siphon some regnms traffic and maybe some etf listings to me, but no big drama if not.
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.
https://chatgpt.com/share/68e6a1a5-e634-8002-ac97-6e2e36052e...
No. Each company chooses what exchange their stock is sold on. Sometimes (often for large companies) you are on more then one exchange, but never all of them.
Nothings stops an exchange (laws may not allow this but remember exchanges are in many countries and only subject to the laws of their country) from handling stock that the company doesn't want on them, but 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.
Not all exchanges handle stocks. There are other things traded as well.
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 exchanges.
Also, I too am struggling to understand posting a trade of an unlisted stock to an exchange. This sounds pretty similar to a dark pool?
Back in 1800 an exchange was a place where a lot of buyers and sellers agreed to meet up so that you had good odds of finding a buyer when you wanted to sell. The exchange happened by exchanging papers which then got sent to the company to know how the new owners were.
This gets at why there were a lot more exchanges in the past than now. Ownership is recorded electronically (you can get paper but almost nobody does) do you don't need to send papers into head quarters. We also have fast communication so can have your agent take care of things in New York in seconds no matter where in the world you are - in 1800 you had to physically go to an exchange (or send an agent).
An unlisted exchange is similar to a dark pool. The company whoes stock is traded on one will treat the trade like any other dark pool. However if they are trying to operate like a listed exchange they will doing other exchange like things (posting prices), so you get the worst of both worlds.
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.
Also note Schwab is headquartered in Texas and they account for a significant percentage of trading in the US on a daily basis.
Norbert's Gambit is a good reason. It is potentially the cheapest way to effectively do a currency exchange.