Throw your cowboy hats in the air.
With the Texas Stock Exchange opening for business last week, years of hype give way to the real test: Can it become a genuine competitor to the New York Stock Exchange and Nasdaq, which together dominate US listings and have already established their own Texas operations? “The Texas Stock Exchange is not even the first mover in its own backyard,” said Clayton Allison, a portfolio manager at Prime Capital Financial.
For TXSE to carve out a meaningful niche, it will need to win exclusive listings rather than simply host securities already trading elsewhere. “The question is what companies will they be able to attract?” Allison told Advisor Upside. “Will it be small caps that find the environment more friendly? Because there’s almost no chance they’ll convince the mega-caps to switch their primary listings.” It’s important to note that hundreds of billions of shares are traded on the NYSE and Nasdaq each year, so TXSE has some pretty big cowboy boots to fill.
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