BlackRock Inc., Citadel Securities, and other investors are supporting a new stock market in Texas that aims to challenge the dominance of the New York Stock Exchange and Nasdaq Inc.
The Texas Stock Exchange has raised $120 million in funding and plans to submit registration documents to the US Securities and Exchange Commission, according to a post by James Lee, the CEO of the exchange, on LinkedIn.
The goal of the Texas Stock Exchange is to attract companies that are looking for alternatives to the increasing compliance costs at the NYSE and Nasdaq, said Lee in an interview with the Wall Street Journal, which first reported on the development. The exchange will be fully electronic and will have its headquarters in Dallas, strengthening the city’s position as a growing hub for financial jobs, with companies like Goldman Sachs Group Inc. and Charles Schwab Corp. already establishing a presence there.
According to the TXSE website, the Texas Stock Exchange’s main focus will be to facilitate access to U.S. equity capital markets for both domestic and international companies. It will also provide a platform for trading and listing public companies as well as exchange-traded products. A spokesperson from Citadel confirmed their investment in the project, while BlackRock declined to comment. The TXSE plans to conduct its first trades in 2025 and host its first listing in 2026, as mentioned by Lee in an interview with the Journal. However, it should be noted that competing against well-established exchanges like NYSE and Nasdaq will pose significant challenges, as other new exchanges have encountered obstacles in attempting to enter established markets.