The initiative to launch a new national stock exchange in Texas has gained significant momentum with investments from major players like BlackRock and Citadel Securities. TXSE Chairman and CEO James Lee announced that the Dallas-based group has secured $120 million in funding from over two dozen investors. The move is seen as a response to the growing interest in exploring alternatives to traditional stock exchanges like the New York Stock Exchange and Nasdaq.
One of the key selling points of the new exchange is its promise to be “more CEO-friendly” in comparison to its established counterparts. This comes at a time when companies are facing increasing regulatory pressures and compliance costs. The Texas Stock Exchange aims to capitalize on the state’s thriving economy and the rapid economic and population growth in the southeastern region of the United States.
The decision to launch a new stock exchange comes at a time when existing exchanges are grappling with regulatory challenges. In particular, a controversial Nasdaq rule mandating companies to disclose diversity information about their board of directors has stirred debate. The approval of the plan by the SEC in 2021 has now been met with legal challenges in a federal appeals court, highlighting the complexities of regulatory compliance in the stock market.
TXSE’s vision for the future involves establishing a “fully electronic, national securities exchange” that aims to secure registration with the U.S. Securities and Exchange Commission. The exchange is targeting a commencement of trading activities in 2025, with plans to host listings by 2026. According to reports, TXSE will focus on attracting companies from the southeastern region of the U.S., tapping into the vibrant business environment and growth opportunities in the area.
In an interview with the Dallas Morning News, CEO James Lee expressed gratitude towards Texas Governor Greg Abbott for his backing and leadership in facilitating the launch of the Texas Stock Exchange. The state’s pro-business environment and supportive policies are expected to play a crucial role in the success of the new exchange. This collaborative effort between private investors and state authorities underscores the significance of creating new avenues for companies to access capital and investors to diversify their portfolios.