Texas Stock Exchange

Last updated
Texas Stock Exchange
TXSE logo Sep 2024.svg
Type Stock exchange
Location Dallas, Texas, United States
Founded2025 (2025) (planned)
Key peopleJames H Lee (CEO)
Website txse.com

The Texas Stock Exchange (TXSE) is a planned national stock exchange to be headquartered in Downtown Dallas, Texas, United States. The group behind the exchange, led by TXSE CEO James Lee, is financed by institutional investors including BlackRock and Citadel Securities, with investments totaling approximately $135 million as of September 2024. [1] [2] The exchange is planned to launch its platform and facilitate trades in late 2025, and host its first listings in early 2026. [1] [3] [4] [5] [6] It is expected to accept double listing of companies already present on NYSE or Nasdaq and will have an exchange-traded fund (ETF) business. [1] [3] [7]

Contents

According to U.S. Securities and Exchange Commission (SEC) filings, the committed investment makes TXSE the most well-capitalized exchange to ever submit a registration to the SEC. [2] [ failed verification ]

Leadership

In September 2024, former President of the Federal Reserve Bank of Dallas Richard W. Fisher and former Texas Governor Rick Perry were named as a strategic advisor and a member of the board of directors, respectively. [6] Additional board members include Rick Roberts, a former SEC commissioner, and Alex Bussandri, global head of strategy at Citadel Securities. [2] The exchange has also recruited several senior executives from NYSE and Nasdaq to support its development. [2] TXSE plans for its physical presence to be in the heart of Dallas at the Texas Market Center (TMC), where the company expects to employ more than 100 people. [8]

Structure and operations

The exchange plans to facilitate listings for public companies, exchange-traded products (ETPs), and American depositary receipts (ADRs). [9] According to CEO James Lee, TXSE plans to implement stringent listing standards that would be more restrictive than current exchanges. These standards would include earnings tests and minimum price requirements that, according to Lee's statements to the Financial Times, would exclude approximately 1,500 Nasdaq-listed companies and 200 NYSE-listed companies from qualifying. [10] The exchange will be fully electronic and will maintain a physical presence in Dallas. [9]

Market context

The exchange estimates its potential market includes approximately 1,000 publicly traded companies and 14,000 private equity-backed companies based in the "southeast quadrant" of the United States (seQ), an area stretching from Texas to North Carolina. [10] Dallas, which hosts a Federal Reserve Bank and 24 Fortune 500 companies, is considered the nation's second-biggest financial hub by number of industry employees. [11] The proposal to establish TXSE comes at a time when several Fortune 500 companies relocating their headquarters to the state. [12]

See also

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References

  1. 1 2 3 Fine, Julie; Hagan, Shelly; Doherty, Katherine (5 June 2024). "BlackRock, Citadel Back Texas Stock Exchange in Challenge to NYSE". Bloomberg.
  2. 1 2 3 4 "Texas Stock Exchange moves closer to launch with leadership team, board". Reuters. 2024-09-30. Retrieved 2025-01-15.
  3. 1 2 Driebusch, Corrie (4 June 2024). "New Texas Stock Exchange Takes Aim at New York's Dominance". The Wall Street Journal.
  4. ↑ Gleeson, Cailey (5 June 2024). "A Billionaire-Backed Texas Stock Exchange Is In The Works—Here's What To Know". Forbes.
  5. ↑ Osipovich, Alexander (7 June 2024). "A Texas Stock Exchange Wants to Take on New York. The Odds Aren't Good". The Wall Street Journal.
  6. 1 2 Arnold, Kyle (2024-09-30). "Texas Stock Exchange names its 'Y'all Street' leadership team as it looks toward launch". The Dallas Morning News. Retrieved 2024-09-30.
  7. ↑ Jiménez, Miguel (2024-06-17). "Norte contra Sur: la nueva Bolsa de Texas desafía a Wall Street". El País (in Spanish). Retrieved 2024-06-17.
  8. ↑ "Texas Stock Exchange to set up shop in Weir Plaza as it searches for permanent HQ". Dallas News. 2024-12-09. Retrieved 2025-01-15.
  9. 1 2 Driebusch, Corrie (4 June 2024). "New Texas Stock Exchange Takes Aim at New York's Dominance". The Wall Street Journal.
  10. 1 2 Hughes, Jennifer; McCormick, Myles (2024-10-04). "New Texas exchange pledges tougher standards than New York rivals". Financial Times. Retrieved 2025-01-15.
  11. ↑ Arnold, Kyle (2024-09-30). "Texas Stock Exchange names its 'Y'all Street' leadership team as it looks toward launch". The Dallas Morning News. Retrieved 2024-09-30.
  12. ↑ Osipovich, Alexander (7 June 2024). "A Texas Stock Exchange Wants to Take on New York. The Odds Aren't Good". The Wall Street Journal.
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