The Texas flag is shown before the game between the Houston Cougars and Texas Longhorns at TDECU Stadium on October 21, 2023 in Houston.
Tim Warner | Getty Images Sport | Getty Images
Black stone And Citadel Securities are among investors backing a group seeking to start a new national securities exchange in Texas.
The Dallas-headquartered group has raised $120 million with backing from more than two dozen investors, said James Lee, chairman and CEO of TXSE.
“Texas’ booming economy and strong interstate economic and population growth in the southeastern quadrant of the United States provide incredible opportunities for businesses — and ultimately for the Texas Stock Exchange,” Lee said on LinkedIn.
The Wall Street Journal reported on the effort earlier, saying the exchange describes itself as a “more CEO-friendly” alternative to the NYSE and Nasdaq in the face of increased regulation and “discontent with rising compliance costs.”
A disputed Nasdaq rule requires listed companies to disclose diversity information on their boards. The Securities and Exchange Commission approved the plan in 2021, but it now faces a new challenge in a federal appeals court.
TXSE's website said it would be a “fully electronic national securities exchange that will seek registration with the U.S. Securities and Exchange Commission.” TXSE aims to begin trading in 2025 and host listings in 2026, according to the Journal report.
The Dallas Morning News reported that TXSE will target companies in the “southeastern quadrant of the United States.” In an interview with the newspaper, Lee thanked Texas Governor Greg Abbott for his support and leadership.
