By Suzanne McGee and Niket Nishant
(Reuters) – The Texas Stock Exchange (TXSE) is eyeing a 2026 launch after submitting paperwork to operate as a national securities exchange, its parent company said on Friday.
The company hopes the U.S. Securities & Exchange Commission will approve the application before the end of the year as it attempts to disrupt the New York-dominated industry.
The proposed exchange said it wants to reverse the shrinking number of publicly traded companies, tackling what it described as the high cost of going public and remaining on exchanges.
“This is a very big step forward,” said Anne Peetz, an attorney specializing in capital markets at Reed Smith LP in Houston.
Since the exchange’s backers announced their plans in the summer, few details have been disclosed. The so-called Form 1, which includes how the new exchange will handle trading, listing rules, fees and other matters, may not be publicly available for several weeks.
In conjunction with the filing, the exchange said it has received $161 million in capital from over four dozen investors. Their ranks include corporate giants such as BlackRock, Citadel Securities, Charles Schwab and as well as major U.S. market makers and trading firms such as Jump Trading.
“It’s an interesting idea,” said Rick Wurster, CEO of Schwab, who added that it gives the firm and its clients another option.
The exchange is positioning itself as a challenger to the Nasdaq and the New York Stock Exchange, long the country’s leading securities marketplaces.
The Texas Stock Exchange’s headquarters will occupy part of a new building in Dallas, which will include executive offices, a conference center and an “iconic bell-ringing venue”, according to a fact sheet from the exchange.
Two market structure analysts, who asked not to be named because they were not authorized to speak publicly about the venture, said TXSE will need to offer more to compete.
Another upstart exchange, IEX, spent four years trying to entice existing publicly traded companies only to abandon the effort in 2019.
“This is a very competitive environment,” said Peetz. Companies considering listing on the TXSE “will want to make sure the TXSE is the equivalent if not better” than its rivals.
Texas Governor Greg Abbott said in September the new exchange would expand the state’s financial might and cement its economic power on the global stage. A number of high-profile firms, including Elon Musk’s Tesla, have shifted their headquarters to the state in recent years, citing a more welcoming business climate.
(Reporting by Niket Nishant in Bengaluru and Suzanne McGee in New York; editing by Pete Schroeder and Cynthia Osterman)
Comments