Skip to main content
Business

New Texas Stock Exchange takes on New York in stock market showdown

Jun 5

Share

Texas is two-stepping on New York City’s territory with plans to open a competing stock exchange. TXSE Group announced Wednesday, June 5, that it raised $120 million in capital to start the Texas Stock Exchange. Financial heavyweights BlackRock and Citadel Securities backed the exchange.

Media Landscape

See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below.

Learn more about this data

Left 20%

Center 55%

Right 25%

Bias Distribution Powered by Ground News

Few buildings in New York are more iconic than the New York Stock Exchange, which is the largest stock exchange in the world by market capitalization and trading volume. Next in line is the Nasdaq, also headquartered in New York City. Texas wants to take them both on.

“TXSE will ultimately create more competition around quote activity, liquidity and transparency,” James Lee, founder and CEO of TXSE Group, said.

QR code for SAN app download

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

The Texas Stock Exchange would be a fully electronic, national securities exchange. The group said it plans to file registration documents with the U.S. Securities and Exchange Commission later this year.

A stock exchange is simply a marketplace where stock buyers connect with sellers. When a company goes public, it chooses what exchange to list with. But to get accepted at a particular exchange, the company has to follow the rules of that exchange and pay fees.

The Wall Street Journal said the proposed Texas Stock Exchange is “aiming to tap in to disaffection with increasing compliance costs at Nasdaq and NYSE and newer rules like one setting targets for board diversity at Nasdaq.”

TXSE Group said it believes it will be the most well-capitalized exchange entrant to file registration with the SEC. There used to be more regional exchange options, but most of those closed or folded into the effective duopoly of the NYSE and Nasdaq.

Once approved, TXSE will have the task of convincing companies to list on its exchange. According to Fortune, Texas is tied with New York for the second-most Fortune 500 companies headquartered in a state at 52. For the first time since 2014, California came out on top with 57.

Especially in recent years, Texas tried to entice more financial business to the state, whether it is companies moving headquarters there or reincorporating.

This year, Texas will launch a new business court system to challenge Delaware, America’s corporate home for more than a century. And they are doing so with a little public relations help from Elon Musk.

Tesla shareholders are currently voting on whether to move its incorporation from Delaware to Texas after Delaware courts struck down Musk’s $56 billion pay package.

Tags: , , , , , , , , , , , , ,

[Pace commercial]

This stuff’s made in New York City? New York City! 

[Simone Del Rosario]

If New York City salsa two-stepped on Texas territory, get a serving of this. Texas wants to open a stock exchange. Not a livestock exchange, equities. 

Few buildings in New York are more iconic than the New York Stock Exchange, which is the largest stock exchange in the world by market cap and trading volume. Next in line is the Nasdaq, which is also headquartered in New York City.

Texas wants to take ’em both on with the Texas Stock Exchange. TXSE Group announced Wednesday it raised $120 million in capital to start a stock exchange headquartered in Dallas. The move is backed by big names in finance: BlackRock and Citadel Securities. 

TXSE would be a fully electronic, national securities exchange. The group says it plans to file registration documents with the U.S. Securities and Exchange Commission later this year. 

Let’s back it up a bit and talk about the purpose of a stock exchange. In the simplest of terms, it’s just a marketplace where buyers connect with sellers. 

When a company goes public, it chooses what marketplace to list with. But to get accepted at a marketplace, the company has to follow the rules of that marketplace and pay fees.

The Wall Street Journal says the proposed Texas Stock Exchange is trying to tap in to disaffection with increasing compliance costs at Nasdaq and NYSE and newer rules like one setting targets for board diversity at Nasdaq. 

TXSE Group says its exchange will create more competition and choice. There used to be more regional options but most of those have folded into this effective duopoly of the NYSE and Nasdaq. 

According to Fortune, Texas is tied with New York for the second-most Fortune 500 companies headquartered in a state. For the first time since 2014, California comes out on top.

Especially in recent years, Texas has been trying to entice more financial business to the state, whether it’s companies moving headquarters there or reincorporating there. 

This year, Texas is launching a new business court system to challenge Delaware, America’s corporate home for more than a century. And they’re doing so with a little PR help from Elon Musk. Tesla shareholders are currently voting on whether to move its incorporation from Delaware to Texas after Delaware courts struck down Musk’s $56 billion pay package.

For more unbiased, straight facts straight to your phone, download the Straight Arrow News app.