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131 sats \ 2 replies \ @elvismercury 5 Jun \ on: BlackRock, Citadel Securities-backed TXSE Group to start Texas Stock Exchange econ
In the same way that index funds exert a foundational and self-reinforcing bias into the system, presumably exchanges do the same? So even a smallish one could have big effects. Sadly, I don't know what they would be.
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0 sats \ 1 reply \ @zuspotirko 5 Jun
index funds exert a foundational and self-reinforcing bias into the system
do they?
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100 sats \ 0 replies \ @elvismercury 5 Jun
See e.g.
Fichtner, J., Heemskerk, E. M., & Garcia-Bernardo, J. (2017). Hidden power of the Big Three? Passive index funds, re-concentration of corporate ownership, and new financial risk. Business and Politics, 19(2), 298–326. https://doi.org/10.1017/bap.2017.6
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