New Texas-based stock exchange looks to take on Nasdaq, NYSE

DALLAS — A Texas-based stock exchange is in the works.

Backed by BlackRock and Citadel Securities, TXSE Group, Inc. says it plans to file registration with the U.S. Securities and Exchange Commission to start operating as a national securities exchange, Texas Stock Exchange (TXSE), later this year. There are currently over two dozen investors behind the effort with $120 million in funding.

The new exchange would be based in Dallas as it looks to take on the world-famous New York Stock Exchange and Nasdaq.

TXSE will be a “fully electronic national securities exchange” that seeks to expand access to U.S. capital markets “for all investors while providing greater access and alignment for public companies and those seeking access to public capital,” according to the press release.

“Changes in equities trading markets are driving more volume to exchanges and more choices for issuers and sponsors,” said James Lee, founder and CEO of TXSE Group Inc. “TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike.”    

Previous regional exchanges like the Philadelphia Stock Exchange, the Boston Stock Exchange, and the Chicago Stock Exchange merged with either the Nasdaq or the NYSE after the introduction of laws by the U.S. Securities and Exchange Commission favoring automated trading platforms.  

Texas is home to the most Fortune 500 companies in the country and over 5,000 private equity-sponsored companies. There are also more than 1,500 publicly traded companies in the region. The Lone Star state is the eighth-largest economy among the nations of the world. At $2.4 trillion, Texas’ economy is larger than Russia, Canada, and Italy, according to a report from the governor’s office.

“We’re thrilled to bring to fruition the long-held vision for a national stock exchange in Texas,” Lee said. “Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas.”    

TXSE Group aims to launch by 2026. 

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