Texas Stock Exchange: A New Challenger to NYSE & NASDAQ? | Pivot

Kara Swisher and Scott Galloway discuss the proposed Texas Stock Exchange (TXSE), and whether it will be successful. Can it rival the NYSE and Nasdaq? And will Elon bring his business to the new exchange? #pivot #podcast #texas #txse #stockexchange

Kara SwisherhostScott Gallowayhost

Jun 10, 20245mWatch on YouTube ↗

WHAT IT’S REALLY ABOUT

Texas Stock Exchange Targets ‘Anti-Woke’ Edge Against NYSE and NASDAQ

The hosts discuss the proposed Texas Stock Exchange (TXSE), a new, fully electronic exchange backed by BlackRock and Citadel that aims to compete with the NYSE and NASDAQ. They see more competition as broadly positive, especially if it lowers fees and pressures incumbents, while criticizing the overt politicization of the exchange as a “non-woke” alternative. The conversation explores how lighter listing and disclosure requirements might attract companies—possibly led by Elon Musk—while potentially undermining perceived quality. They also debate whether stock exchanges should engage in social engineering, like board diversity mandates, or simply act as neutral trading venues.

IDEAS WORTH REMEMBERING

5 ideas

Expect TXSE to compete on lower costs and lighter rules.

The hosts anticipate TXSE will market itself as more ‘business friendly’ with lower filing fees and fewer disclosure requirements, directly undercutting NYSE and NASDAQ.

Perceived quality of listings drives higher valuations.

They note that stricter listing standards on NYSE and NASDAQ contribute to higher average P/E ratios, as investors treat admission like an elite screening process that signals company quality.

Politicizing exchanges risks alienating both companies and investors.

Framing TXSE as the non-woke alternative may energize some constituencies but could exhaust and turn off others who just want efficient, neutral capital markets.

Elon Musk could be a catalytic early adopter.

The hosts speculate TXSE is courting Musk to list Tesla, SpaceX, and other companies there, likely on terms that minimize transparency around financials, compensation, and other disclosures.

Regional and political loyalty will be used as a pressure tool.

They predict Texas officials will push Texas-based companies to list on TXSE, framing it as a ‘team Texas’ or red-state-versus-blue-state choice rather than a purely financial decision.

WORDS WORTH SAVING

5 quotes

Oh, shut the fuck up, Greg Abbott.

— Kara Swisher

I think you need more competition. And Texas, there’s no getting around it, has done an amazing job.

— Scott Galloway

This is another case study... I think competition is good. It’ll bring down fees.

— Scott Galloway

They’ll position themselves as more business friendly and less woke.

— Scott Galloway

You’re just a money exchange, so just hush up and just see if you can give good services to companies.

— Kara Swisher

Launch and structure of the proposed Texas Stock Exchange (TXSE)Political framing of TXSE as a ‘pro-capitalism, anti-woke’ exchangeTexas’s economic strength and appeal to large corporationsListing standards, disclosure requirements, and perceived company qualityDual listings and logistics of trading across multiple exchangesElon Musk’s potential role and influence on TXSE’s positioningImpact of new competition on NYSE and NASDAQ fees and practices

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