In a bold move that could potentially shake up the stock market landscape, BlackRock and Citadel Securities are among the investors backing a group that is looking to launch a new national stock exchange based in Texas. This new exchange, known as the Texas Stock Exchange (TXSE), has already raised an impressive $120 million with the backing of more than two dozen investors.
TXSE Chairman and CEO, James Lee, pointed out that Texas’s thriving economy, along with the strong economic and population growth in the southeastern states of the U.S., provides a fertile ground for business opportunities. Lee highlighted the potential for growth and development, not only for businesses but also for the Texas Stock Exchange as a whole.
The TXSE is positioning itself as a more “CEO-friendly” alternative to the established New York Stock Exchange and Nasdaq. This move comes in response to the increasing regulations and compliance costs faced by companies listed on these traditional exchanges. The TXSE aims to provide a more welcoming environment for CEOs and companies looking to go public.
One of the major challenges that the TXSE will have to navigate is the current controversial Nasdaq rule requiring listed companies to disclose diversity information about their board of directors. Although the plan was approved by the SEC in 2021, it has encountered a legal challenge in a federal appeals court. The TXSE is well-aware of these obstacles and is gearing up to address them as it moves forward with its plans.
TXSE’s website describes the new exchange as a “fully electronic, national securities exchange” that intends to seek registration with the U.S. Securities and Exchange Commission. The TXSE is aiming to commence trading activities in 2025 and start hosting listings in 2026, according to a report by The Wall Street Journal. The exchange will primarily focus on companies located in the southeastern region of the U.S.
In a statement to the media, James Lee expressed his gratitude towards Texas Governor Greg Abbott for his support and leadership in making the Texas Stock Exchange a reality. The backing of influential investors like BlackRock and Citadel Securities, combined with the supportive environment in Texas, sets the stage for the TXSE to become a formidable player in the national stock exchange arena.