Texas Eyes New Stock Exchange to Compete with NYSE, Nasdaq

The newly-formed TXSE Group has announced plans to launch a Texas Stock Exchange, backed by US$120 million from over two dozen investors, including BlackRock and Citadel Securities. The group aims to file for registration with the Securities and Exchange Commission (SEC) later this year, positioning it as the most well-capitalized exchange entrant to seek SEC registration.

James Lee, CEO, TXSE Group, highlighted the move as leveraging Texas's robust economy and the economic growth in the southeastern United States. The exchange plans to enable trades in 2025 and host its first listing in 2026. “TXSE will ultimately create more competition around quote activity, liquidity, and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers, and liquidity providers alike,” Lee said in a statement.

The TXSE aims to be more accommodating to CEOs facing stringent regulations and higher compliance costs at other exchanges like Nasdaq and the New York Stock Exchange (NYSE), according to a report by The Wall Street Journal. Despite being fully electronic, the TXSE will be headquartered in Dallas, a growing business hub, especially in financial services.

Home to more Fortune 500 companies than any other state and over 5,200 private equity-sponsored companies, Texas and the southeastern states are described by Lee as economic powerhouses. “Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas,” Lee said.