Texas is establishing its own national stock exchange

The Future. A group of major investment firms, companies, and high net-worth individuals have filed with the SEC to launch a new national stock exchange in Texas. While there used to be several exchanges last century, the last few decades have been dominated by the New York Stock Exchange and Nasdaq. Considering how partisan politics have seeped into the finance industry, expect the Texas Stock Exchange to woo companies looking to make a statement to potential shareholders.

Freedom in financing
Texas is flexing its independent spirit with the upcoming launch of the Texas Stock Exchange.

• The project has raised $120 million and is backed by BlackRock (the world’s largest asset management firm) and Citadel Securities (one of the biggest electronic trading firms) — two of Wall Street’s biggest players.
• The backers believe that the NYSE and Nasdaq now have too many rules and regulations (such as compliance costs and board diversity requirements), so the TXSE aims to be more lax and “CEO-friendly,” per WSJ.
• The plan is to officially launch this year, start facilitating trades next year, and host its first public listing in 2026.
• TXSE’s trades will be entirely electronic, aiming to attract primary and dual listings and ETFs (hello, crypto).

The move comes as Texas, especially the city of Dallas, has become a magnet for businesses searching for more favorable regulations and lower taxes. Elon Musk famously moved SpaceX out there, AT&T and American Airlines are already in the state, and Goldman Sachs is building a new campus.

We’ll see how many decide to list on the new exchange.