Texas Stock Exchange Backed by BlackRock to challenge NYSE

A new national stock exchange situated in Dallas, backed by Wall Street heavyweights such as BlackRock and Citadel, aims to compete with the world-renowned New York Stock Exchange and Nasdaq.

TXSE stated that it has raised around $120 million in capital and will file to register with the US Securities and Exchange Commission this year.

The organization stated that it will be a “fully electronic, national securities exchange” headquartered in Dallas.

The Wall Street Journal previously reported on the project, stating that the exchange is positioning itself as a “more-CEO friendly” alternative to the New York Stock Exchange and Nasdaq in the face of expanding regulation and a “disaffection with increasing compliance costs.”

A contentious Nasdaq rule requires listed businesses to provide diversity information about their boards of directors. The SEC approved the proposal in 2021, but it is now facing a new lawsuit in a federal appeals court.

Large corporations have been drawn to the conservative US state in recent years from progressive states such as California and New York.

Elon Musk’s Tesla relocated its headquarters to Texas in 2021, and he is requesting that shareholders transfer the company’s articles of incorporation from Delaware to the border state.

According to the Federal Reserve Bank of Dallas, Texas saw net immigration of about 7,200 enterprises and approximately 103,000 jobs between 2010 and 2019.

The state cites its low tax rates, growth as a major digital hub, and dominance in the US oil sector as reasons why firms consider it as a valuable business partner.

The Journal said that the exchange would be more accommodating to CEOs who have faced stricter controls at Nasdaq and the NYSE.