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Re:Texas poised to get own stock exchange – with less red ta... by Danieru on Wednesday June 05, 2024 @09:49AM (#40584725)
Up north in Canada instead of having a single SEC each province has its own securities regulation.

Which let's the Texas of Canada, Alberta, run it's own stock exchange with much looser listing requirements and security requirements. This Texas exchange will not have that advantage.

The important aspect for Alberta within the context of Canada. Is how the local regulation allows the Alberta exchange to list and provide capital to junior drillers. Small companies which raise capital using ipos to use in speculative drilling. Alberta sees this as important for their economy. To the extent it prevents Canada from having a nation SEC like singular security regulator.

With that in mind, I question how a Texas based exchange will be more than a market for lemons. Companies too sketchy for the big exchanges might be interested in listing, but no one worth investing. This contrasts with Alberta where the difference in regulation allows a unique group of companies to list.

Instead we'd expect an exchange who's selling point is less regulation, to be filled with companies who cannot pass the higher bar. A self selection of the worst companies.

Re:Texas poised to get own stock exchange – with less red ta... by chollida1 on Wednesday June 05, 2024 @10:31AM (#40585238)
> Which let's the Texas of Canada, Alberta, run it's own stock exchange with much looser listing requirements and security requirements. This Texas exchange will not have that advantage.

One point of note, there hasn't been an Alberta stock exchange since 1999. The Toronto stock exchange bought the Vancouver, Alberta and small cap option market form Montreal and merged them into one stock exchange called the Toronto Venture stock exchange.

Its head quarters are in Calgary but its computer are located in Ontario and its under IIROC supervision and rules. And the BC and Alberta government co regulate it but their securities commission rules aren't what's followed, its the IIROC rules that apply.

Re:Texas poised to get own stock exchange – with less red ta... by astrodust on Wednesday June 05, 2024 @10:49AM (#40585497)
The Canadian Venture Exchange was absolute anarchy, and that was compared to the already lax Toronto exchange that had been chock full of sketchy mining stocks, the poster child of which was Bre-X.

Which of course was from Calgary.

https://en.wikipedia.org/wiki/Bre-X

Re:Texas poised to get own stock exchange – with less red ta... by chx on Wednesday June 05, 2024 @11:47AM (#40586364)
> Busang's gold resource was estimated by Bre-X's independent consulting company, Kilborn Engineering (a division of SNC-Lavalin of Montreal

Ah yes, SNC-Lavalin and fraud, name a more iconic duo.

https://www.cbc.ca/news/canada/montreal/snc-lavalin-trading-...

https://en.wikipedia.org/wiki/SNC-Lavalin_affair

Re:Texas poised to get own stock exchange – with less red ta... by astrodust on Monday June 10, 2024 @10:27AM (#40634005)
If only they still made Heritage Minutes.
Re:Texas poised to get own stock exchange – with less red ta... by chollida1 on Wednesday June 05, 2024 @10:58AM (#40585647)
Bre-X was actually dual listed on the TSX(in Toronto) and the Nasdaq in the US, not the junior venture exchange.

But, agreed, that stock was a wild ride while it lasted!!

Re:Texas poised to get own stock exchange – with less red ta... by Spooky23 on Wednesday June 05, 2024 @11:05AM (#40585752)
Elon has demonstrated that you can get high, make a stupid multi-billion dollar company acquisition, and just sack another public company that you control to make yourself whole.

When the “overbearing regulatory regime” represents said company shareholders interests, you move to Texas where the MAGA vision of freedom reigns.

Re:Texas poised to get own stock exchange – with less red ta... by TacticalCoder on Wednesday June 05, 2024 @11:29AM (#40586111)
Well do you take a world with Tesla and SpaceX or without it?

We have to thank Musk, even if he does crazy things. It is thanks to his crazyness that we have Tesla and SpaceX.

Without Musk EVs would be nowhere and NASA and ESA would still be the laggard they are with reusable launchers absolutely nowhere to be found.

It's way too easy to say: "I want all the good side of capitalism (like wealth and science advances) but none of the bad sides".

Starlink too btw.

Re:Texas poised to get own stock exchange – with less red ta... by ryandrake on Wednesday June 05, 2024 @12:18PM (#40586813)
> Without Musk EVs would be nowhere and NASA and ESA would still be the laggard they are with reusable launchers absolutely nowhere to be found.

There is no way to prove this without having the ability to observe all the other universes that have Musk and that don't have Musk. It's very likely if he didn't build these companies, someone else, or multiple someones, would have built similar companies.

Re:Texas poised to get own stock exchange – with less red ta... by golemotron on Wednesday June 05, 2024 @11:44AM (#40586326)
Elon is a ressentiment magnet. It's the price of success today.
Re:Texas poised to get own stock exchange – with less red ta... by hn72774 on Wednesday June 05, 2024 @11:54AM (#40586492)
I respected the guy on his merits until he fabricated the Saudi investor nonsense to take Tesla private at $420 a share. When that happened, I sold my last few Tesla shares that came from the SolarCity acquisition. It's been a word vomit rollercoaster since then.

He feeds off negative attention and actively seeks it out.

Re:Texas poised to get own stock exchange – with less red ta... by limpbizkitfan on Wednesday June 05, 2024 @11:58AM (#40586548)
People can use their successes for common good. I don’t see Elon Musk or Liza Powell-Jobs or Miriam Adelson doing that.
Re:Texas poised to get own stock exchange – with less red ta... by pseudalopex on Wednesday June 05, 2024 @02:45PM (#40588729)
> Liza Powell-Jobs

Laurene Powell Jobs?

Lisa Brennan-Jobs?

Liza Powel O'Brien?

Re:Texas poised to get own stock exchange – with less red ta... by limpbizkitfan on Thursday June 06, 2024 @12:06PM (#40599084)
Whatever
Re:Texas poised to get own stock exchange – with less red ta... by InitialLastName on Wednesday June 05, 2024 @01:58PM (#40588174)
Absent Musk, someone else would have worked out how to arbitrage government subsidies on efficient cars, household solar and space flight. That's how capitalism works: if there's free money floating about, someone will figure out how to take it.
Re:Texas poised to get own stock exchange – with less red ta... by smsm42 on Wednesday June 05, 2024 @06:18PM (#40591254)
There were - and are - a lot of companies vying for those sweet subsidies. And most of them can't make it work even with subsidies. Maybe Toyota with their prius is getting anywhere, the rest are mostly a footnote. And yet, Musk comes and makes a successful business there. I think there's something more than subsidies in play. Sure, subsidies help, but a lot of people failed where Musk succeeded.
Re:Texas poised to get own stock exchange – with less red ta... by Spooky23 on Wednesday June 05, 2024 @03:08PM (#40589019)
As an investor, I’d prefer to fire him. Capitalism is about what I get now, not what you did yesterday
Re:Texas poised to get own stock exchange – with less red ta... by asadotzler on Wednesday June 05, 2024 @03:54PM (#40589738)
No, we hold them to account like everyone else and they still give us what we want, they just get a little bit less outrageously wealthy doing it.
Re:Texas poised to get own stock exchange – with less red ta... by pirate787 on Wednesday June 05, 2024 @05:44PM (#40590974)
What's "outrageous" about Musk's wealth? He built companies that provide breakthrough goods and services.

The increasing amounts of envy and malice in American culture is troubling.

Re:Texas poised to get own stock exchange – with less red ta... by yutrin on Thursday June 06, 2024 @07:50AM (#40596301)
> What's "outrageous" about Musk's wealth?

Aside from everything?!

I’ll bite.

1) He’s an individual yet his wealth surpasses the GDP of entire nations.

2) The market caps of his companies that informs that wealth are wildly and recklessly speculative. The company that innovated in its space is worth 1/3 of the company that has consistently oversold or completely failed to make good on promises(which frankly they all do regardless of their innovative effect).

3) And still, he’s currently holding one of his companies for ransom for even more.

> He built companies that provide breakthrough goods and services.

I must have misunderstood why his companies hired all of those employees.

Were they all just there cheering him on as he built it all himself?

Re:Texas poised to get own stock exchange – with less red ta... by rsynnott on Thursday June 06, 2024 @05:18AM (#40595276)
> Without Musk EVs would be nowhere

This is a pretty absurd idea. The Tesla Model S, the Nissan Leaf, and the Renault Z-E platform (initially with a pretty unsuccessful car built on it; the successful Renault Zoe came the year after) all came out within a year of each other. The VW e-Golf came out the year after. You can thank progress in lithium ion batteries hitting a tipping point, not Musk, coupled with government incentives (California, the EU, and China were all pretty much saying to manufacturers "make this, and we will subsidise it").

I can see why people might think this, particularly Americans, because the Tesla Model 3 was arguably the first mainstream/affordable electric car _in America_ (the Leaf and similar vehicles never really caught on there; they're too far outside market preferences), but the idea that Tesla in some way made electric cars possible is simply nonsense.

Re:Texas poised to get own stock exchange – with less red ta... by joquarky on Wednesday June 05, 2024 @05:46PM (#40590990)
Sounds like Texas will be hosting a lot of .biz style companies
Re:Texas poised to get own stock exchange – with less red ta... by throw0101d on Wednesday June 05, 2024 @11:03AM (#40585724)
> Up north in Canada instead of having a single SEC each province has its own securities regulation.

Note that this is because of constitution reasons and areas of responsibility:

* https://www.canada.ca/en/intergovernmental-affairs/services/...

* https://en.wikipedia.org/wiki/Federalism

Every so often there's talk about consolidating things to a single SEC-like entity, but it has not happened at this point:

* https://en.wikipedia.org/wiki/Canadian_securities_regulation

Re:Texas poised to get own stock exchange – with less red ta... by onlyrealcuzzo on Wednesday June 05, 2024 @11:41AM (#40586282)
> With that in mind, I question how a Texas based exchange will be more than a market for lemons.

There is a non-trivial market for speculating on garbage.

If you're Texas, why not go for it?

Re:Texas poised to get own stock exchange – with less red ta... by xyst on Wednesday June 05, 2024 @11:00AM (#40585686)
> With that in mind, I question how a Texas based exchange will be more than a market for lemons. Companies too sketchy for the big exchanges might be interested in listing, but no one worth investing.

This is exactly how it will end up being used for. Companies that are listed as OTC (over the counter) or “pink sheets” are most certainly dog shit; and often subjected to pump and dump schemes. The TXSE will be no different especially with reported “fewer regulations” than NASDAQ or NYSE.

This is great news for grifters. The average retail investor will likely end up getting shafted.

Re:Texas poised to get own stock exchange – with less red ta... by ryandrake on Wednesday June 05, 2024 @12:25PM (#40586904)
Yep. Let's say you're a reputable business with solid earnings and market cap, and a track record of following the rules and being able to meet listing standards. Which exchange(s) are you going to consider? The well-known, venerable NYSE or NASDAQ, or the Texas Freewheelin' Discount Bargain Barbecue Exchange?

Now, if you're a less than reputable business, with questionable earnings and a disregard for following the rules, and you are ineligible to be listed on the NYSE or NASDAQ, which exchange are you going to consider?

Re:Texas poised to get own stock exchange – with less red ta... by hermitdev on Wednesday June 05, 2024 @01:47PM (#40588035)
BSE, CHX, MS4X, NSX, PHLX and more? NYSE & NASDAQ aren't the only players in the US equities exchange market. NYSE & NASDAQ are merely the 2 largest players in a very large field. And that's _just_ equities. Get into commodities or options and other derivatives and there's even more.

Also, not being listed on NYSE or NASDAQ doesn't mean you're any less of a reputable company. There's some real shit listed on both.

Re:Texas poised to get own stock exchange – with less red ta... by lowkey on Wednesday June 05, 2024 @09:51AM (#40584761)
From the article Texas is home to more Fortune 500 companies than any other state including New York and California.
Re:Texas poised to get own stock exchange – with less red ta... by mbreese on Wednesday June 05, 2024 @10:11AM (#40585016)
Texas has the headquarters of many companies, but how many are actually incorporated in Texas? What would the advantages be to a Texas exchange over NYSE or NASDAQ?

I understand the desire for a different marketplace. But no matter where it is, they’ll still have to follow Federal securities laws, which will require some level of red tape.

Many of those companies are national or multi-national companies. For example, Exxon has its headquarters outside of Houston, but is actually incorporated in New Jersey (According to Wikipedia). So, for them, what would the benefit be?

Re:Texas poised to get own stock exchange – with less red ta... by AJ007 on Wednesday June 05, 2024 @10:35AM (#40585305)
This is probably just a preemptive move in case of a New York state financial transaction tax and has less to do with any other political issues. This isn't "Texas" setting up their exchange, it's Blackrock and Citadel. The CME had this issue with Chicago/Illinois politicians demanding a financial transaction tax so they are did things to be set up to leave immediately if it passed.
Re:Texas poised to get own stock exchange – with less red ta... by supplied_demand on Wednesday June 05, 2024 @11:30AM (#40586126)
==The CME had this issue with Chicago/Illinois politicians demanding a financial transaction tax so they are did things to be set up to leave immediately if it passed.==

Has a bill ever even existed to pass in Illinois? This idea seems to be brought up more as a scare tactic from the trading and business community than as a revenue generator from actual politicians.

Re:Texas poised to get own stock exchange – with less red ta... by limpbizkitfan on Wednesday June 05, 2024 @12:07PM (#40586678)
Chicago has always been fought over between speculative interests who want parts of the city to remain poor for cheap development, and more “citizen focused” groups that want the resource to be taxed for the betterment of all.

Most of Ken Griffin’s work has been buying his family name on things and repeating anxieties about crime and (lack of) policing without actually providing solutions or even calling out root causes. But again, he’s not really a citizen of Chicago, nor the US. People at his level of control (his admitted price fixing, or moving trades to dark pools) have inherited and expanded on wealth to the point where they don’t need friends or social programs or infrastructure to live out 90 years on the planet.

Re:Texas poised to get own stock exchange – with less red ta... by kllrnohj on Wednesday June 05, 2024 @10:20AM (#40585111)
Don't they all incorporate in Delaware? Isn't that the thing to do because of the courts there?
Re:Texas poised to get own stock exchange – with less red ta... by mbreese on Wednesday June 05, 2024 @10:31AM (#40585243)
That was my assumption too, but it's not across the board. For example, AT&T, Inc (HQ in Dallas) is a Delaware Corp. But, I expect that any of these companies that have many years of history will have complex organizational structures. As such, I'm not sure what benefit a brand new exchange would have for them.

If I were TXSE, what I'd be arguing is that the new market would have a benefit for new companies. Can you list faster with fewer requirements? Will there be capital available on the market? Can an IPO on their market be a replacement for later stage VC?

These are the companies they'd want to recruit.

Re:Texas poised to get own stock exchange – with less red ta... by willmadden on Wednesday June 05, 2024 @10:36AM (#40585338)
Did you read the article? NASDAQ is forcing their listed companies to hire directors based on their sex, race, and sexual orientation. I'm not sure how that is remotely legal.
Re:Texas poised to get own stock exchange – with less red ta... by Yossarrian22 on Wednesday June 05, 2024 @10:48AM (#40585485)
They can also list in their proxy statement why they don’t have a diverse board
Re:Texas poised to get own stock exchange – with less red ta... by willmadden on Sunday June 09, 2024 @12:37PM (#40625620)
"Diverse board" is a euphemism for discriminating against those that are not defined as "diverse".

It puts people in positions of authority based on their ethnicity, biological sex, and sexual orientation and therefore discriminates against others based on their ethnicity, biological sex, and sexual orientation.

Re:Texas poised to get own stock exchange – with less red ta... by willmadden on Sunday June 09, 2024 @02:38PM (#40626509)
... and to add, this is an egregious violation of the equal protection clause of the 14th amendment.
Re:Texas poised to get own stock exchange – with less red ta... by Finnucane on Wednesday June 05, 2024 @10:53AM (#40585573)
Where does it say that in the article?
Re:Texas poised to get own stock exchange – with less red ta... by rco8786 on Wednesday June 05, 2024 @10:07AM (#40584967)
Wikipedia says TX has 49 and CA/NY each have 53.

But regardless of which state has the most at any given moment, even if 100% of Texas F500 companies decided to abandon their existing exchange and investor base for a more relaxed regulatory environment, that's...49 companies.

Re:Texas poised to get own stock exchange – with less red ta... by vitus on Wednesday June 05, 2024 @11:29AM (#40586115)
For what it's worth, Wikipedia cites the 2021 list. The 2023 list had Texas at 55: https://www.statesman.com/story/news/local/2023/06/05/texas-...

edit: another commenter points out that California reclaimed the throne in the 2024 list, released just yesterday.

As far as I can tell, there's some amount of movement to Texas for lower corporate taxes (especially companies led by executives like Musk or Ellison who prefer Texas's politics).

I would be surprised if any major companies delist from NYSE / NASDAQ in order to go all-in on a new exchange, although I could see, say, Tesla considering it if it was a condition for an attractive ticker symbol like T (NYSE symbol for AT&T, which is also headquartered in Texas).

Re:Texas poised to get own stock exchange – with less red ta... by HWR_14 on Wednesday June 05, 2024 @10:33AM (#40585280)
Sure, or it's 10% of F500 companies. Which would be about 800 if a similar percentage of listed companies were TX based and moved to the new exchange.

And if Tesla is a trendsetter, TX might be seeing an influx of large companies. At least for legal incorporation.

Re:Texas poised to get own stock exchange – with less red ta... by tivert on Wednesday June 05, 2024 @09:52AM (#40584781)
> From the article Texas is home to more Fortune 500 companies than any other state including New York and California.

But the question is: will they change their listing to this new stock market, or stay with the long-recognized ones?

Re:Texas poised to get own stock exchange – with less red ta... by bluGill on Wednesday June 05, 2024 @10:15AM (#40585049)
Probably not - Fortune 500 is probably already on the NYSE and unlikely to move. Will smaller companies list in Texas though?
Re:Texas poised to get own stock exchange – with less red ta... by fdasfdasfdjf on Wednesday June 05, 2024 @10:19AM (#40585103)
The Fortune 500 could still issue new shares on the new Texas exchange.
Re:Texas poised to get own stock exchange – with less red ta... by chollida1 on Wednesday June 05, 2024 @10:38AM (#40585357)
That's not how things work. Shares can be freely traded on any of these exchanges at any time.

its where you list that we are discussing here.

Listing on an exchange is all about what reporting requirements you are required to make inorder to be a publicly listed company and what share requirement you are required to maintain to list.

ie

- share price above a certain threshold,

- report your financials quarterly, etc.

- often a minimum trading volume

- certain requirements about the viability of the company, ie not bankrupt, etc.

Foreign companies will often dual list in the US to get access to US liquidity as well as list on their own home exchanges.

But once you are listed in the US there is no benefit to list on multiple exchanges as all you do is make your reporting requirements go up. Your shares can be traded on any US exchange once you are listed on any of htem.

Re:Texas poised to get own stock exchange – with less red ta... by bluGill on Wednesday June 05, 2024 @01:02PM (#40587462)
What if a company wants a new class of stock - would they always list on the same exchange? I'm not sure what the rules are around this, but I know it is sometimes done.
Re:Texas poised to get own stock exchange – with less red ta... by quickthrowman on Wednesday June 05, 2024 @11:41AM (#40586280)
‘The Fortune 500’ is not an index fund, it’s a list published by a magazine.
Re:Texas poised to get own stock exchange – with less red ta... by giantg2 on Wednesday June 05, 2024 @10:04AM (#40584946)
They could potentially dual list.
Re:Texas poised to get own stock exchange – with less red ta... by rolandog on Wednesday June 05, 2024 @10:21AM (#40585127)
And at the very least, it'll serve as a good indicator of which companies don't view enshittification as a mistake/phase, but rather a goal/lifestyle.
Re:Texas poised to get own stock exchange – with less red ta... by giantg2 on Wednesday June 05, 2024 @10:45AM (#40585449)
I don't think dual listing would really indicate that. A fully switch would be a better indicator.
Re:Texas poised to get own stock exchange – with less red ta... by georgeecollins on Wednesday June 05, 2024 @10:26AM (#40585183)
It seems close behind California and New York, so maybe it has/ will become true:

https://www.statista.com/statistics/303696/us-fortune-500-co...

I think the economic growth of Texas is great for the US. States trying different models of regulation is a good way to test what works.

Re:Texas poised to get own stock exchange – with less red ta... by testfrequency on Wednesday June 05, 2024 @10:32AM (#40585263)
They don’t.

California has 57

New York and Texas are at 52

Source: https://www.gov.ca.gov/2024/06/04/icymi-california-is-now-ho...

Re:Texas poised to get own stock exchange – with less red ta... by vitus on Wednesday June 05, 2024 @11:49AM (#40586411)
Notably, the 2024 list was released just yesterday, so I wouldn't fault anyone for not having seen that yet. Texas was in the lead for a couple of years, but honestly it's so close that I don't think it's interesting to assert that "X state has the most big companies according to some magazine's list!". CA, NY, and TX are all huge states with long-standing business investment. That's not changing any time soon.
Re:Texas poised to get own stock exchange – with less red ta... by testfrequency on Wednesday June 05, 2024 @01:09PM (#40587564)
I get it, but the fact is…California is currently #1.

As an aside, I do find it still impressive given the number of high profile companies that relocated, and the fact that there’s a constant news doom agenda against California.

All this to say, it’s a healthy reminder of just how much California matters to the US and global economy

Re:Texas poised to get own stock exchange – with less red ta... by bongobingo1 on Wednesday June 05, 2024 @10:03AM (#40584928)
"Home" is probably a stretch, don't they mostly just incorporate via a P.O. Box in Delaware? I guess there is Austin too.
Re:Texas poised to get own stock exchange – with less red ta... by jeffbee on Wednesday June 05, 2024 @10:08AM (#40584984)
It's Panamanian-flagged ships, but corporations.
Re:Texas poised to get own stock exchange – with less red ta... by daemin on Wednesday June 05, 2024 @10:15AM (#40585054)
This doesn't really matter on which world-wide stock exchange companies end up listing. There are many companies which list on the NASDAQ rather than in their home exchanges, or on a more theme appropriate exchange rather than one closer to their actual area of operations (I'm thinking mineral exploration companies on the ASX).
Re:Texas poised to get own stock exchange – with less red ta... by duxup on Wednesday June 05, 2024 @09:55AM (#40584827)
Why would they change their listing?
Re:Texas poised to get own stock exchange – with less red ta... by arcticbull on Wednesday June 05, 2024 @10:02AM (#40584908)
Ah yes forum shopping.
Re:Texas poised to get own stock exchange – with less red ta... by Fatnino on Wednesday June 05, 2024 @03:41PM (#40589560)
Sounds like you just described exactly what's wrong with SPACs
Re:Texas poised to get own stock exchange – with less red ta... by smsm42 on Wednesday June 05, 2024 @06:11PM (#40591180)
You are implying that the company that seeks less regulation necessarily does it because it's of lesser quality and this is the reason they can not abide by stricter regulations. I don't think this assumption is true.