A new national stock exchange is in the works in Texas, with investors like BlackRock and Citadel Securities backing the initiative. TXSE Chairman and CEO, James Lee, announced that the group has successfully raised $120 million with the backing of over two dozen investors. This venture is set to take advantage of Texas’s growing economy and the rapid economic and population growth in the southeastern states of the U.S.
A CEO-Friendly Alternative
The upcoming Texas Stock Exchange (TXSE) is positioning itself as a more “CEO-friendly” alternative to established exchanges like the New York Stock Exchange and Nasdaq. This move comes as companies express growing concerns over rising regulations and compliance costs. For instance, a Nasdaq rule demanding listed companies to disclose diversity information about their board of directors has faced opposition, with a federal appeals court now challenging the SEC-approved plan.
The TXSE website describes the new exchange as a “fully electronic, national securities exchange” that intends to register with the U.S. Securities and Exchange Commission. The goal is to commence trading activities by 2025 and begin hosting company listings in 2026. As reported by The Dallas Morning News, TXSE aims to attract businesses from the southeastern region of the U.S.
In his interactions with the press, James Lee expressed his gratitude to Texas Governor Greg Abbott for his backing and guidance towards the establishment of the Texas Stock Exchange. This signifies the support and encouragement that the venture has received from key figures in the state’s leadership.
The emergence of a new stock exchange in Texas signals a shift in the financial landscape, offering companies an alternative platform to showcase their value to investors. With backing from influential investors and a clear vision for the future, TXSE aims to carve a niche for itself in the competitive world of stock exchanges. As the endeavor moves forward, it will be interesting to see how this new player disrupts the traditional scene and impacts the broader market dynamics.