May 28, 2025

Texas Stock Exchange Aims to Compete with Wall Street

News Summary

The Texas Stock Exchange (TXSE) has raised $161 million to challenge Wall Street’s dominance. With major financial backing, TXSE plans to introduce stringent listing criteria and aims to initiate trading by early 2026. CEO James Lee asserts TXSE will set high governance standards while attracting companies previously listed on NYSE and Nasdaq. This move comes as Texas positions itself as a viable competitor to traditional finance hubs, leveraging its booming economy and support for local investments.

Texas – The Texas Stock Exchange (TXSE) is poised to challenge the dominance of Wall Street as it announces a successful fundraising round of $161 million, backed by prominent financial institutions including BlackRock and Citadel Securities. This substantial financial support marks TXSE as a formidable contender in the national securities exchange landscape.

In his remarks, the CEO emphasized that TXSE is the “most well-capitalized national securities exchange applicant to ever file a registration with the SEC.” The TXSE officially submitted its Form 1 application for registration as a national securities exchange on April 4, 2025.

Notably, TXSE is the first fully integrated exchange to apply for registration in the last 25 years, marking a historic moment in the evolution of financial markets in the United States.

In response to the emergence of the TXSE, established players such as the New York Stock Exchange (NYSE) and Nasdaq have initiated strategic moves by establishing Texas-located markets or offices. The NYSE is relocating one of its electronic exchanges to Texas, while Nasdaq is unveiling a new regional headquarters in Dallas. This shift is indicative of Texas’s burgeoning status as a competitor to New York and Delaware for hosting financial and corporate enterprises.

TXSE has unveiled proposed listing rules that reflect similarities to Nasdaq’s regulations, including stringent requirements on corporate governance, shareholder approval, and material information disclosure. Its planned trading hours will align with those of the NYSE and Nasdaq, operating from 9:30 a.m. to 4:00 p.m. Eastern Time.

The listing requirements for domestic corporate issuers on TXSE are more rigorous compared to those of Nasdaq’s lowest tier, the Nasdaq Capital Market. Unlike Nasdaq, TXSE does not have multiple listing tiers, instead opting for criteria that are closely aligned with NYSE standards. This exchange is set to cater to companies committed to adhering to stricter governance standards and is taking a firm stance against certain leniencies often allowed regarding environmental, social, and governance (ESG) concerns.

Despite some initial delays in federal approval processes, which have hindered TXSE’s launch timeline compared to NYSE Texas, which began operations on March 31, 2025, TXSE remains optimistic about its planned trading operations set to commence by early 2026. The launch will ultimately clarify how TXSE interprets and enforces its trading rules.

NYSE Texas has made significant strides by securing Trump Media & Technology Group as its pioneering listing, reflecting a trend of major financial firms moving their operations to Texas, particularly in the rapidly growing Dallas–Fort Worth area. The Texas economy is currently experiencing significant growth, solidifying its position as a competitive hub for financial exchanges.

Recent statistics indicate that Texas boasts the second-largest economy in the U.S. and the eighth-largest globally, with continual expansion outpacing many other states. TXSE originally filed its registration paperwork in January 2025, highlighting its commitment to establishing itself within the financial sector.

TXSE’s approach will prioritize quality over quantity concerning its listing standards, which may result in the exclusion of approximately 1,700 companies that are currently listed on NYSE and Nasdaq. This may provide TXSE with unique advantages amid the growing fragmentation of equity markets.

Additionally, the cultural business environment in Texas promotes local investment in homegrown exchanges, further enhancing demand for TXSE. The combination of significant financial backing, economic expansion, and evolving regulatory landscapes positions TXSE as a formidable challenger to the long-standing duopoly of NYSE and Nasdaq.

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Author: STAFF HERE GEORGETOWN

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