Texas group plans stock exchange to compete with NYSE and Nasdaq

Stay informed with free updates

A fledgling Texas Stock Exchange has raised $120 million from investors including BlackRock and Citadel Securities with the goal of launching a new national rival to the New York Stock Exchange and Nasdaq.

TXSE Group has raised capital from more than two dozen investors and “prominent business leaders across the country” in hopes of becoming “the most well-capitalized stock market participant” to seek recognition from federal regulators, James posted Lee, its president and CEO. to LinkedIn on Tuesday night.

The Wall Street Journal first reported that the Texas Stock Exchange was launching with Lee, a longtime financial professional in the state, at the helm and a plan to begin handling its first operations in 2025 and its first listing in 2026.

A spokesperson for Citadel Securities confirmed that the trading firm was backing TXSE, but declined to comment further. BlackRock declined to comment.

The exchange’s website describes itself as an “all-electronic national stock exchange” that would house public companies and the growing exchange-traded fund industry, which has amassed $8.6 trillion challenging the stock market’s dominance. American mutual funds, much larger.

Texas has increasingly sought to remake itself as a center for corporate finance. Last year, the state enacted a law to create the Texas Business Court as a venue for business cases with more than $5 million at stake, establishing an alternative to corporate law flashpoints established in New York and Delaware.

The latter continues to be, by far, the state chosen by large companies to establish themselves. But Delaware’s status has come under attack from Elon Musk, the Tesla CEO whose $56 billion stock pay package has been challenged in Delaware state court.

The Texas Stock Exchange faces an uphill battle challenging the New York Stock Exchange and Nasdaq, the two biggest players in the U.S. stock market. BlackRock, Citadel and many other large US financial institutions have previously supported new exchanges like Members Exchange.

Leave a Comment