Texas Stock Exchange (TXSE)

The Texas Stock Exchange (TXSE) is a proposed new national stock exchange to be headquartered in Dallas, Texas. It aims to compete with the New York Stock Exchange (NYSE) and Nasdaq as a listing venue for public companies. 
The TXSE has raised approximately $120 million from individuals and large investment firms like BlackRock and Citadel Securities to establish the new exchange. Its stated goals are to provide an alternative to what its backers view as onerous regulation at the NYSE and Nasdaq, positioning itself as more business-friendly. 
The exchange plans to file registration documents with the U.S. Securities and Exchange Commission (SEC) in late 2024, with the aim of facilitating its first trades in 2025 and hosting initial public offerings (IPOs) starting in 2026. It will be an entirely electronic exchange but plans to have a physical presence in downtown Dallas.
On Sept. 30, 2024 the Texas Stock Exchange announced a board of directors. The board members will include former Texas Governor and former U.S. energy secretary Rick Perry; former SEC Commissioner Rick Roberts, and Alex Bussandri, global head of strategy at Citadel Securities.
TXSE Group Inc., TXSE's parent company, closed its initial fundraising round in January 2025 at $161 million and said the TXSE had filed for registration as a bourse with the US SEC. If the registration is granted, trading would start in early 2026, the company said in a statement.
The chief executive of the exchange, Jim Lee, pledged tougher listing standards than his New York rivals, telling the Financial Times that the new exchange’s standards, including earnings tests, minimum prices and other unspecified measures, would be so strict they would in effect exclude more than a third of the companies listed on Nasdaq and the New York Stock Exchange.
== Background ==
The proposed TXSE emerges amid a shifting corporate landscape in the United States, with many companies relocating to states like Texas due to favorable regulatory environments and tax policies. Texas has surpassed all other states in the number of Fortune 500 company headquarters it hosts.
Backers of the TXSE cite increasing compliance costs and certain corporate governance rules, like Nasdaq's board diversity requirements, as motivating factors behind establishing a new exchange. However, the TXSE's CEO has stated that the exchange itself will be apolitical.
=== Challenges ===
Establishing a new stock exchange that can effectively compete with the NYSE and Nasdaq duopoly for corporate listings and trading volumes faces significant hurdles. Previous attempts by other exchanges like IEX and the Long-Term Stock Exchange have gained little traction so far.
The TXSE is banking on the support of its major backers like Citadel Securities, one of the largest electronic trading firms, to help attract trading volumes. SEC regulations that require brokers to connect to all exchanges may also provide some benefit.
== Key People ==
*James H. Lee - CEO and Founder
*Cam Smith - Global Head of Trading and Co-President
*Jeff Brown - General Counsel and Chief Regulatory Officer
*Nicole Chambers - Corporate Listings
== References ==
Category:Proposed Equity Exchanges