Texas Stock Exchange plans to compete with Nasdaq and NYSE
Major investment firms are joining forces to open a new trading floor. According to the Wall Street Journal, BlackRock and a group backed by Citadel Securities initiated the project. The Texas Stock Exchange (TXSE) has raised US$120 million. Next, the team plans to file paperwork to register with the SEC. If the SEC approves, the TXSE will become the new national exchange.
According to the platform’s director, James Lee, the TXSE has several goals for the coming years:
– simplify trading operations by 2025;
– the exchange has planned its first IPO for 2026.
Lee said the exchange plans to run initial and dual offerings and integrate the various products available on the platform into the process.
The exchange cites the stricter requirements of the major exchanges as a limitation to the IPO. These are the Nasdaq and the NYSE, both expensive to list. Growing problems in this area show the need for change. Experts say the new national exchange could seriously compete with Nasdaq. This could change the current situation in the sector for the better. The support of prominent investors, including BlackRock, underlines the TXSE’s potential. In total, more than 20 different companies have backed the platform.
New platform features
The new exchange will be in Dallas. It will be entirely electronic and open to all investors who wish to participate in trading. Simplifying access to the US capital markets is at the heart of the platform’s structure. Simplifying the IPO process will also receive particular attention. In addition, more participants will be able to take advantage of public capital.
In Lee’s view, the changes will increase trading volumes and the range of options available to issuers. The emergence of a strong competitor in the market will increase the transparency of processes, listing activity, and, hence, liquidity.
It is worth noting that the Texas exchange is a trading platform with strong potential:
– the majority of Fortune 500 companies have a presence here;
– more than 5,000 private companies are listed;
– there are more than 1,500 publicly traded companies in the region.
The state’s economy is also the eighth largest in the world. According to the latest data, it is worth US$2.4 trillion, more than Canada and Italy.
Its new status is due to begin in 2026. Meanwhile, major investors have not commented on TXSE’s plans to become a national platform.
