BlackRock Inc., Citadel Securities and other investors are backing an upstart Texas stock market to challenge the New York Stock Exchange and Nasdaq Inc.
The Texas Stock Exchange has raised $120 million and plans to file registration documents with the U.S. Securities and Exchange Commission, according to a LinkedIn post by James Lee, the exchange’s chief executive officer.
The Texas bourse will try to entice companies seeking relief from increasing compliance costs at the NYSE and Nasdaq, Lee told the Wall Street Journal, which earlier reported the development. While entirely electronic, Lee’s post said the TXSE will be headquartered in Dallas, bolstering a metro area that has been gaining financial jobs from the likes of Goldman Sachs Group Inc. and Charles Schwab Corp.
“The Texas Stock Exchange will focus on enabling U.S. and global companies to access U.S. equity capital markets and will provide a venue to trade and list public companies and the growing universe of exchange-traded products,” the TXSE said on its website.
A Citadel spokesperson confirmed the company is an investor in the project. BlackRock declined to comment.
The TXSE is aiming to handle its first trades in 2025 and host its first listing in 2026, Lee told the Journal. But any effort to take on the NYSE and Nasdaq will face daunting challenges, and other upstart exchanges have faced significant hurdles in efforts to muscle in on established markets.
This article was provided by Bloomberg News.