Texas Stock Exchange (TXSE)

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Texas Stock Exchange (TXSE)
LogoTXSE-250px.jpg
Founded 2023
Headquarters Dallas, TX
Key People James H. Lee
Employees 50+
Products Trade and list public companies and exchange-traded products
LinkedIn Profile
Website www.txse.com

The Texas Stock Exchange (TXSE) is a proposed new national stock exchange to be headquartered in Dallas, Texas. It aims to compete with the New York Stock Exchange (NYSE) and Nasdaq as a listing venue for public companies.[1][2] [3]

Overview[edit]

The TXSE has raised approximately $120 million from individuals and large investment firms like BlackRock and Citadel Securities to establish the new exchange. Its stated goals are to provide an alternative to what its backers view as onerous regulation at the NYSE and Nasdaq, positioning itself as more business-friendly.[4]

The exchange plans to file registration documents with the U.S. Securities and Exchange Commission (SEC) in late 2024, with the aim of facilitating its first trades in 2025 and hosting initial public offerings (IPOs) starting in 2026. It will be an entirely electronic exchange but plans to have a physical presence in downtown Dallas.

Background[edit]

The proposed TXSE emerges amid a shifting corporate landscape in the United States, with many companies relocating to states like Texas due to favorable regulatory environments and tax policies. Texas has surpassed all other states in the number of Fortune 500 company headquarters it hosts.

Backers of the TXSE cite increasing compliance costs and certain corporate governance rules, like Nasdaq's board diversity requirements, as motivating factors behind establishing a new exchange. However, the TXSE's CEO has stated that the exchange itself will be apolitical.[5]


Challenges[edit]

Establishing a new stock exchange that can effectively compete with the NYSE and Nasdaq duopoly for corporate listings and trading volumes faces significant hurdles. Previous attempts by other exchanges like IEX and the Long-Term Stock Exchange have gained little traction so far.

The TXSE is banking on the support of its major backers like Citadel Securities, one of the largest electronic trading firms, to help attract trading volumes. SEC regulations that require brokers to connect to all exchanges may also provide some benefit.

Key People[edit]

References[edit]