BlackRock and Citadel Securities to Launch New Texas Stock Exchange

In a bold move to challenge the dominance of the New York Stock Exchange (NYSE) and Nasdaq, BlackRock and Citadel Securities are backing the launch of a new national stock exchange in Texas. The Texas Stock Exchange (TXSE), led by CEO James Lee, has already raised approximately $120 million in funding and plans to file registration documents with the Securities and Exchange Commission (SEC) later this year.

The TXSE aims to begin facilitating trades in 2025 and host its first listing in 2026. The exchange is positioning itself as a cost-effective and competitive alternative to traditional exchanges, targeting companies seeking to avoid the increasing compliance costs and regulations imposed by NYSE and Nasdaq.

The launch of a new national stock exchange in Texas could have significant implications for the US financial industry and economy. It could lead to increased competition, lower costs, and more options for companies looking to go public, potentially changing the dynamics of the US stock market.

CEO James Lee expressed his vision for the new exchange, stating, "We aim to be the number three listing venue in the U.S." He also highlighted the potential impact on Dallas, saying, "It is exciting, it's transformational. Frankly, it could change the arc of Dallas for decades."

The TXSE will be a fully electronic exchange, headquartered in Dallas, with a data center and executive offices in the region. The exchange plans to employ 100 workers and will focus on attracting companies from Texas, Oklahoma, and the southeast quadrant of the United States. The exchange has already been in contact with several Dallas-based companies and others across the nation to get listed when it goes live.

The initiative also benefits from strong political support. Governor Greg Abbott has been a key proponent, advocating for amending the state constitution to bar financial transaction taxes in the future. Lee credited Abbott's leadership, saying, "Without question, the reason we're here today is Governor Abbott's leadership."

The TXSE aims to provide a business-friendly environment, promising stability in the wake of New York's proposed financial transaction tax. This move is seen as a strategic effort to draw activity away from the NYSE and Nasdaq, creating a competitive environment in the U.S. capital markets.

With a $2.4 trillion economy, Texas stands eighth largest economy in the world, ahead of countries like Canada and Italy. The establishment of the TXSE in Dallas is expected to significantly boost the local economy and further solidify Texas's position as a major economic entity.

Texas Stock Exchange prepares to launch, its success will depend on its ability to attract listings and compete effectively with established exchanges. The backing of financial giants BlackRock and Citadel Securities, combined with a supportive political climate, positions the TXSE as a formidable new player in the U.S. stock exchange arena.

Key Takeaways

• BlackRock and Citadel Securities back new Texas Stock Exchange (TXSE) to rival NYSE and Nasdaq.
• TXSE aims to launch in 2025, targeting cost-effective and competitive listings.
• Exchange to be headquartered in Dallas, focusing on Texas, Oklahoma, and southeast US companies.
• Texas Governor Greg Abbott supports TXSE, advocating for no financial transaction taxes.
• TXSE aims to be the third-largest listing venue in the US, boosting the local economy.