According to media reports, a group supported by Wall Street giants such as BlackRock and Castle Investments is planning to establish a new national securities exchange.
James Lee, CEO of the Texas Securities Exchange (TXSE), told the media that the exchange has raised about $120 million from individuals and large investment firms, and plans to submit registration documents to the U.S. SEC later this year.
According to media reports, a group supported by Wall Street giants such as BlackRock and Castle Investment is planning to establish a new national securities exchange, with the goal of avoiding the heavy regulation of the New York Stock Exchange and NASDAQ.
James Lee, CEO of the Texas Securities Exchange (TXSE), told the media that the exchange has raised about $120 million from individuals and large investment firms, and plans to submit registration documents to the U.S. Securities and Exchange Commission (SEC) later this year. The company aims to start trading in 2025 and go public for the first time in 2026.
The exchange hopes to attract more companies with the increasing compliance costs and various new regulations (such as Nasdaq's "board diversity") of the NYSE and Nasdaq. Supporters of the Texas Securities Exchange promise that it will be more friendly to the CEOs of listed companies.
On the other hand, with dozens of companies moving to Texas for more relaxed regulation and better tax policies, Texas currently has more Fortune 500 companies than most states. Well-known companies include Exxon Mobil, AT&T and American Airlines. Last year, Goldman Sachs broke ground on a new campus in Dallas that reportedly can accommodate more than 5,000 employees.
"Dallas has become one of the most important financial centers in the United States and even the world," Lee said. "Our goal is to become the third largest listing venue in the United States, which is transformative. It may change the development trajectory of Dallas for decades. It is the density of this technological infrastructure, market participants and network efficiency that make Dallas an important financial center."
He also mentioned that TXSE will fully adopt electronic trading, and also plans to establish a physical exchange in downtown Dallas. The exchange plans to compete for opportunities for some companies' dual listings and also hopes to attract some exchange-traded products.
Media analysis points out that in the current situation of the NYSE-Nasdaq duopoly, it will not be easy for the new exchange to get off the ground. In the past 20 years, the Boston Stock Exchange, the Chicago Stock Exchange, and the Philadelphia Stock Exchange have been successively merged, and the startup stock exchange (IEX) and the Chicago Options Exchange have also tried to enter the stock listing business, but with little success.
However, TXSE also has opportunities. Castle Investments, mentioned earlier, is one of the world's largest electronic trading companies, while BlackRock is the world's largest asset management company, and both have a history of supporting emerging exchanges.
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