BlackRock and Citadel Securities are among the prominent investors backing a new national stock exchange, the Texas Stock Exchange (TXSE), based in Texas. TXSE Chairman and CEO James Lee announced that the Dallas-headquartered group has successfully raised $120 million with the support of over two dozen investors.
“Texas’s booming economy and the strong economic and population growth among states in the southeast quadrant of the U.S. present incredible opportunities for businesses — and ultimately the Texas Stock Exchange,” Lee stated on LinkedIn.
The Wall Street Journal reported that the new exchange is positioning itself as a “more CEO-friendly” alternative to the New York Stock Exchange (NYSE) and Nasdaq. This move comes in response to increasing regulation and rising compliance costs that have caused dissatisfaction among some businesses.
One controversial Nasdaq rule requires listed companies to disclose diversity information on their board of directors. Although the SEC approved this plan in 2021, it is now facing a challenge in a federal appeals court.
TXSE’s website indicated that it will be a “fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission.” According to the Journal, TXSE aims to start trading in 2025 and begin hosting listings in 2026.
The Dallas Morning News reported that TXSE will primarily target companies in the “southeastern quadrant of the U.S.” This focus aligns with the region’s robust economic growth and the increasing demand for a business-friendly regulatory environment.
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