Background and Relevance
The Texas Securities Exchange (TXSE) announced on Tuesday that the U.S. Securities and Exchange Commission (SEC) has approved its application to launch a new stock exchange. This decision paves the way for the Dallas-based TXSE to start trading stocks and listed products by early 2026.
Support from Major Investment Firms
The initiative, backed by prominent investment firms such as BlackRock, Citadel Securities, and Charles Schwab, aims to reduce the dominance of the two existing national exchanges. These exchanges not only facilitate trading but also provide listing services to companies seeking access to the U.S. public markets.
Decline in Publicly Traded Companies
According to SEC data, the number of publicly traded companies in U.S. exchanges has dropped to around 4,400 from over 8,000 in the 1990s. The TXSE seeks to reverse this trend by attracting high-growth sectors like energy, technology, and manufacturing.
Texas’ Business-Friendly Environment
The TXSE plans to capitalize on Texas’ reputation as a business-friendly state with lower taxes and fewer regulations. In recent years, several companies, including Tesla, have relocated their corporate headquarters to Texas.
Key Actions and Timeline
- June 2024: TXSE announces its plans, including financial backing from BlackRock and Citadel.
- January (prior year): TXSE submits a formal approval request to the SEC.
- Post-approval: TXSE hires talent from other exchanges, including two ETF executives from Cboe Global Markets and Nasdaq.
- March 31: NYSE opens a Texas branch and lists Trump Media & Technology as its first company.
- Future: Nasdaq plans to compete for Texas business with a new regional headquarters in the state.
TXSE Operations and Strategy
The TXSE will initially operate online as a virtual market, eventually establishing its own campus and operations center in downtown Dallas.
Key Questions and Answers
- What is the Texas Securities Exchange (TXSE)? The TXSE is a new stock exchange approved by the SEC, set to launch in 2026 with the goal of attracting high-growth companies and reversing the decline in publicly traded firms.
- Who supports the TXSE? Major investment firms like BlackRock, Citadel Securities, and Charles Schwab back the TXSE.
- Why is Texas a suitable location for the new exchange? Texas’ business-friendly environment, lower taxes, and fewer regulations make it an attractive location for companies seeking to list on public markets.
- What sectors does the TXSE aim to attract? The TXSE targets high-growth sectors such as energy, technology, and manufacturing.
- How will the TXSE differentiate itself from existing exchanges? The TXSE plans to offer a more streamlined listing process and capitalize on Texas’ business-friendly reputation.
- What is the timeline for TXSE’s launch? The TXSE is set to begin trading in early 2026, following SEC approval and preparation.
