Here’s what to know about the new Texas Stock Exchange
FILE-Traders work the floor of the New York Stock Exchange (NYSE) during morning trading on February 10, 2023 in New York City. (Photo by Michael M. Santiago/Getty Images)
A new stock exchange is being formed in Texas and is seeking to challenge the New York Stock Exchange and Nasdaq.
The Texas Stock Exchange (TXSE) is a newly formed entity focusing on enabling U.S. and global economies to access U.S. equity capital markets and will provide a space to trade and list public companies and exchange-traded products, according to a company release.
If approved by the U.S. Securities and Exchange Commission, the Texas Stock Exchange will be a fully electronic, national exchange that allows companies to list and trade on its platform.
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With $120 million raised, the company has the support of more than two dozen investors, per the release.
Additionally, the exchange plans to attract businesses frustrated by stringent listing standards and the increasing costs they impose, the TXSE noted in their release. For instance, the Nasdaq has imposed new rules setting targets for board diversity.
According to the Wall Street Journal, the TXSE is also forming based on companies moving to states with better regulatory and taxation rules like the Lone Star state. Texas is among the top three states, the others New York and California, with multiple Fortune 500 companies in their respective areas.
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Some of the notable companies that have moved offices to Texas include Exxon, AT&T, American Airlines, and Goldman Sachs.
"We’re thrilled to bring to fruition the long-held vision for a national stock exchange in Texas," James Lee, founder and CEO of TXSE Group Inc. said in a statement in a company release. "Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas."
TXSE intends to submit a registration with the U.S. Securities and Exchange Commission to operate as a national securities exchange later this year.
Lee told The Wall Street Journal his goal is to launch the TXSE in 2026.
This story was reported from Washington, D.C.