Telis Demos of The Wall Street Journal reports that competition for trading volumes is nothing new, but winning more listings would be truly disruptive. Demos writes:
Equities have been traded in Dallas long enough to be an old Wall Street punchline. But equities being listed in Dallas? New York might not find that so funny.
A group backed by BlackRock BLK and Citadel Securities is planning to launch a share-trading venue to be based in Dallas and called the Texas Stock Exchange. It will be an electronic exchange on which companies can also list their shares.
It is hardly unprecedented for an upstart to nab trading volume from the traditional big names in U.S. stock trading, the New York Stock Exchange and Nasdaq. Earlier this century, two electronic exchanges, BATS and Direct Edge, grabbed big chunks of exchange volume in part by riding the rise of high-frequency trading firms. […]
The “TXSE” hasn’t applied to register with the Securities and Exchange Commission yet. And NYSE and Nasdaq certainly aren’t going to just cough up their clients, which have historically been very tough to pry from those historic venues.
But even in our digital trading age, pitching a listing based on culture or brand isn’t as funny as it might sound.
Read more here.
