4 ms·

So, are the exchanges connected? Would there be any difference for me buying and selling stocks on “normal NYSE” vs “NYSE Texas”? What benefits would companies

by rzz3 2y ago

So, are the exchanges connected? Would there be any difference for me buying and selling stocks on “normal NYSE” vs “NYSE Texas”? What benefits would companies see from listing on NYSE Texas vs the other NYSE?

andylynch 2y ago
As someone who has run similar platforms, I am joking but also not, when I say probably weaker listing rules and poorer liquidity.
- 6stringmerc 2y ago
  This fascinates me because I worked at an investment bank specializing in Texas municipal finance post 2008 crash. There are a lot of sophisticated investors that run to Texas as a bulwark against the larger market in times of instability. Honestly I find your comment more likely than not - as the in-house joke was “equities are where the crooks are” in contrast to our focus on bond debt transactions.
victorbjorklund 2y ago
Different rules probably. In Sweden we got Nasdaq Stockholm and First North. Both owned by Nasdaq and operates out of the same building. First North has more lax rules and generally meant for smaller companies.
- codegladiator 2y ago
  Similar in India, there is BSE and NSE
  - crossroadsguy 2y ago
    Is one has lax rules over the other? I doubt it. Besides there are SME Exchanges run by both of these for smaller companies (small and medium enterprises).
  - tolien 2y ago
    BSE makes me think of Mad Cow Disease [1], quite the bull market. 1: https://en.wikipedia.org/wiki/Bovine_spongiform_encephalopathy https://en.wikipedia.org/wiki/Bovine_spongiform_encephalopat...
    - doodlebugging 2y ago
      Though I would think that India would be the least likely to have any of this type of BSE due to their reverence for the cow. It works out for them as a cultural inoculation against an insidious affliction.
- nebrie 2y ago
  Nasdaq Stockholm also has substantially lower listing fees than Nasdaq USA.
  - HolyLampshade 2y ago
    Not in any way to diminish the Swedish markets, but that's partially because Nasdaq and NYSE know they can sell 'status' in listing on their US markets.
Galanwe 2y ago
> So, are the exchanges connected? More or less, in practice your US broker has to respect "best execution", meaning it cannot offer you a price worst than the "NBBO", which is the composite of all US stock markets. In practice though, I expect most companies listed in NYSE Texas to be solely listed there. > “normal NYSE” vs “NYSE Texas” There's already _a lot_ of "NYSE" markets and segments. Some exist because of historical mergers (Amex, Arca), and some to offer alternate / cheaper listings (NYSE listing is very expensive vs say Nasdaq) > What benefits would companies see from listing on NYSE Texas vs the other NYSE? Unclear at the moment but I expect a lower bar for listing requirements and a cheaper price. Nyse is by far the most expensive listing there is, but it's also very exhaustive on listing requirements (audits, etc). I guess there is also a political/economical deal with Texas at play, to incentivise companies to move there, list there, and grab some of NY market share.
- mFixman 2y ago
  Would this mean that the trading hours for stock of companies listed in both NYSE branches would be extended by one hour due to time differences?
  - Galanwe 2y ago
    Well technically there are different trading hours, calendars and sessions for each market / segment of NYSE. In practice though I don't think you will find many companies listed on multiple subsegments of NYSE in 2025. Roughly speaking, you will find the prestigious / big market cap / rich companies listed on NYSE main market, ETFs on NYSE Arca, small caps on NYSE American (ex Amex), and very small caps on NYSE National. The listing requirements and prices, as well as fee structure also differ for each market. National has a fee structure to incentive adding liquidity for instance. If the asynchronicity bothers you, imagine that you can also trade e.g. HSBC secondary listing on NYSE NY market hours + the ADR of HSBC HK on NYSE NY hours + HSBC primary listing on LSE on London hours + HSBC HKSE on HK hours for a lot of fun.
ForHackernews 2y ago
[flagged]
- renegade-otter 2y ago
  [flagged]
  - immibis 2y ago
    [flagged]
    - Applejinx 2y ago
      Wise implies being able to price in externalities, so I'm not sure that's the best word you could have picked…
      - immibis 2y ago
        Deregulation is happening, whether you like it or not, so the question is now whether you'd like to be rich in a deregulated state or poor in a deregulated state.
    - renegade-otter 2y ago
      Ah yes. "Nothing matters". Why have a country? Why live in a civilization? Cash out and barricade behinds cans of tuna. This is why we are here.
      - cempaka 2y ago
        It's pretty funny when people pitch this as the "savvy" or "smart" strategy.
        viraptor 2y ago
        Just take the financial position on global financial crisis 2. You'll be so rich and happy when it arrives!
JumpCrisscross 2y ago
Yes. The relevant regulation is Reg NMS [1]. [1] https://www.sec.gov/files/rules/final/34-51808.pdf https://www.sec.gov/files/rules/final/34-51808.pdf
zoky 2y ago
Yes, by a series of semaphore towers spanning the country dedicated to the exchange of stock prices. It’s the fastest and most secure way. https://youtube.com/watch?v=cPeVsniB7b0 https://youtube.com/watch?v=cPeVsniB7b0
HolyLampshade 2y ago
> So, are the exchanges connected? Yes, and no. Not in the sense that it's one uniform trading system, but there are various interlinkages (market data via the SIP for example; mostly dictated by RegNMS) and most of the exchanges operate a brokerage running an order routing business. > Would there be any difference for me buying and selling stocks on “normal NYSE” vs “NYSE Texas”? Assuming you have the ability to dictate to your broker where they perform the trade there would be absolutely no difference between trading on NYSE vs NYSE TX (minus maybe some currently undecided fee differences). Functionally they are identical (they even run on the same technology stack). > What benefits would companies see from listing on NYSE Texas vs the other NYSE? The cultural issue TXSE (and by extension this NYSE TX move) are trying to capture is the 'anti-DEI' / 'the exchange tells us what the composition of our board must be to meet listings standards' type things. There's a subset of the corporate world who see value in capitalizing on these issues. There's also the potential for different financial requirements or incorporation requirements, but those haven't been disclosed yet (and wouldn't be too divergent from the existing differences between listing on the various Nasdaq or NYSE exchanges).

by rzz3 2y ago

andylynch 2y ago

As someone who has run similar platforms, I am joking but also not, when I say probably weaker listing rules and poorer liquidity.

6stringmerc 2y ago
This fascinates me because I worked at an investment bank specializing in Texas municipal finance post 2008 crash. There are a lot of sophisticated investors that run to Texas as a bulwark against the larger market in times of instability. Honestly I find your comment more likely than not - as the in-house joke was “equities are where the crooks are” in contrast to our focus on bond debt transactions.

victorbjorklund 2y ago

Different rules probably. In Sweden we got Nasdaq Stockholm and First North. Both owned by Nasdaq and operates out of the same building. First North has more lax rules and generally meant for smaller companies.

codegladiator 2y ago
Similar in India, there is BSE and NSE
- crossroadsguy 2y ago
  Is one has lax rules over the other? I doubt it. Besides there are SME Exchanges run by both of these for smaller companies (small and medium enterprises).
- tolien 2y ago
  BSE makes me think of Mad Cow Disease [1], quite the bull market. 1: https://en.wikipedia.org/wiki/Bovine_spongiform_encephalopathy https://en.wikipedia.org/wiki/Bovine_spongiform_encephalopat...
  - doodlebugging 2y ago
    Though I would think that India would be the least likely to have any of this type of BSE due to their reverence for the cow. It works out for them as a cultural inoculation against an insidious affliction.
nebrie 2y ago
Nasdaq Stockholm also has substantially lower listing fees than Nasdaq USA.
- HolyLampshade 2y ago
  Not in any way to diminish the Swedish markets, but that's partially because Nasdaq and NYSE know they can sell 'status' in listing on their US markets.

Galanwe 2y ago

> So, are the exchanges connected? More or less, in practice your US broker has to respect "best execution", meaning it cannot offer you a price worst than the "NBBO", which is the composite of all US stock markets. In practice though, I expect most companies listed in NYSE Texas to be solely listed there. > “normal NYSE” vs “NYSE Texas” There's already _a lot_ of "NYSE" markets and segments. Some exist because of historical mergers (Amex, Arca), and some to offer alternate / cheaper listings (NYSE listing is very expensive vs say Nasdaq) > What benefits would companies see from listing on NYSE Texas vs the other NYSE? Unclear at the moment but I expect a lower bar for listing requirements and a cheaper price. Nyse is by far the most expensive listing there is, but it's also very exhaustive on listing requirements (audits, etc). I guess there is also a political/economical deal with Texas at play, to incentivise companies to move there, list there, and grab some of NY market share.

mFixman 2y ago
Would this mean that the trading hours for stock of companies listed in both NYSE branches would be extended by one hour due to time differences?
- Galanwe 2y ago
  Well technically there are different trading hours, calendars and sessions for each market / segment of NYSE. In practice though I don't think you will find many companies listed on multiple subsegments of NYSE in 2025. Roughly speaking, you will find the prestigious / big market cap / rich companies listed on NYSE main market, ETFs on NYSE Arca, small caps on NYSE American (ex Amex), and very small caps on NYSE National. The listing requirements and prices, as well as fee structure also differ for each market. National has a fee structure to incentive adding liquidity for instance. If the asynchronicity bothers you, imagine that you can also trade e.g. HSBC secondary listing on NYSE NY market hours + the ADR of HSBC HK on NYSE NY hours + HSBC primary listing on LSE on London hours + HSBC HKSE on HK hours for a lot of fun.

ForHackernews 2y ago

[flagged]

renegade-otter 2y ago
[flagged]
- immibis 2y ago
  [flagged]
  - Applejinx 2y ago
    Wise implies being able to price in externalities, so I'm not sure that's the best word you could have picked…
    - immibis 2y ago
      Deregulation is happening, whether you like it or not, so the question is now whether you'd like to be rich in a deregulated state or poor in a deregulated state.
  - renegade-otter 2y ago
    Ah yes. "Nothing matters". Why have a country? Why live in a civilization? Cash out and barricade behinds cans of tuna. This is why we are here.
    - cempaka 2y ago
      It's pretty funny when people pitch this as the "savvy" or "smart" strategy.
      - viraptor 2y ago
        Just take the financial position on global financial crisis 2. You'll be so rich and happy when it arrives!

JumpCrisscross 2y ago

Yes. The relevant regulation is Reg NMS [1]. [1] https://www.sec.gov/files/rules/final/34-51808.pdf https://www.sec.gov/files/rules/final/34-51808.pdf

zoky 2y ago

Yes, by a series of semaphore towers spanning the country dedicated to the exchange of stock prices. It’s the fastest and most secure way. https://youtube.com/watch?v=cPeVsniB7b0 https://youtube.com/watch?v=cPeVsniB7b0

HolyLampshade 2y ago

> So, are the exchanges connected? Yes, and no. Not in the sense that it's one uniform trading system, but there are various interlinkages (market data via the SIP for example; mostly dictated by RegNMS) and most of the exchanges operate a brokerage running an order routing business. > Would there be any difference for me buying and selling stocks on “normal NYSE” vs “NYSE Texas”? Assuming you have the ability to dictate to your broker where they perform the trade there would be absolutely no difference between trading on NYSE vs NYSE TX (minus maybe some currently undecided fee differences). Functionally they are identical (they even run on the same technology stack). > What benefits would companies see from listing on NYSE Texas vs the other NYSE? The cultural issue TXSE (and by extension this NYSE TX move) are trying to capture is the 'anti-DEI' / 'the exchange tells us what the composition of our board must be to meet listings standards' type things. There's a subset of the corporate world who see value in capitalizing on these issues. There's also the potential for different financial requirements or incorporation requirements, but those haven't been disclosed yet (and wouldn't be too divergent from the existing differences between listing on the various Nasdaq or NYSE exchanges).