The new Texas Stock Exchange (TXSE) has emerged with the aim of challenging the duopoly of the New York Stock Exchange (NYSE) and the Nasdaq. Backed by important actors of Wall Street as BlackRock and Citadel Securities, the TXSE seeks to offer an alternative for companies that consider existing exchange regulations excessive. The appearance of this new exchange could significantly transform the financial landscape in the United States.
With funds already raised amounting to approximately USD 120 million (113 million euros)TXSE plans to file registration documents with the Securities and Exchange Commission (SEC) later this year, with the goal of beginning to facilitate transactions in 2025 and make your first quote in 2026. As stated James Lee, executive director of TXSE, The Wall Street Journalthe exchange promises to be more CEO-friendly, avoiding the high compliance costs and strict diversity rules imposed by Nasdaq.
The American corporate environment has been changing, and many companies are relocating to states with more favorable regulatory and tax policies. Texas has seen an increase in the number of Fortune 500 companies based in the state, tying it with New York and second only to California. Prominent companies such as Exxon Mobil, AT&T and American Airlines operate from Texas, while financial giants such as Goldman Sachs have launched large projects in the region, such as its campus in Dallas that could house more than 5,000 employees.
“Dallas has become one of the dominant financial centers in the country, if not the world,” he claimed readhighlighting the city’s growing importance in the global financial landscape. Citadel Securities and BlackRock They already have a history of supporting new exchanges like MEMX, which handles between 2% and 3% of stock market volume, according to data from Cboe.
One of the biggest challenges for TXSE will be attracting significant trading volumes, as traders tend to direct orders toward exchanges with high volumes. However, the appoggiatura of Citadel Securitiesone of the largest e-commerce companies in the world, and BlackRock, the largest asset manager, could provide a crucial boost. Another part of TXSE’s strategy is to capitalize on new SEC rules that force large brokerages to link to all exchanges, even those with a small market share.
Another aspect that attracted many businesses to Texas was Governor Greg Abbott’s proposal in 2020 to move e-commerce centers to the state from New Jersey, which was considering a financial transactions tax. Although this measure did not come to fruition, it shows ongoing strategies to increase the financial importance of Texas, including the recent establishment of the Texas Business Courts.
TXSE It will be a completely electronic exchange, but it plans to maintain a physical presence in downtown Dallas, promising to be a more accessible and less burdensome platform for businesses. The exchange also hopes to attract listings of publicly traded products and compete for both primary and dual listings.
Over the past few decades, many regional stock exchanges have closed or been absorbed by larger players like the NYSE and Nasdaq. Examples of these acquisitions include the Boston Stock Exchange, the Chicago Stock Exchange, and the Philadelphia Stock Exchange. However, Lee is confident that TXSE will be able to break this pattern and establish itself as a major player in the market.
