Citadel and BlackRock Invest in Project to Establish Texas-Based National Stock Exchange

National Stock Exchange

Among the investors supporting a consortium looking to launch a new national stock exchange in Texas are BlackRock and Citadel Securities. With the help of more than two dozen investors, the Dallas-based organization has raised $120 million, according to TXSE Chairman and CEO James Lee.

“Texas’s booming economy and the strong economic and population growth among states in the southeast quadrant of the U.S. present incredible opportunities for businesses — and ultimately the Texas Stock Exchange,” TXSE CEO James Lee said.

In light of growing regulation and a “disaffection with increasing compliance costs,” the exchange is marketing itself as a “more-CEO friendly” substitute for the New York Stock Exchange and Nasdaq, according to a story on the project that was published earlier.

A contentious Nasdaq regulation mandates that listed firms reveal information about the diversity of their board of directors. The scheme was approved by the SEC in 2021, but a federal appeals court is currently considering a new challenge to it.

According to the sources, TXSE’s official said it will be a “fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission.” The TXSE is aiming to start trading in 2025 and host listings in 2026. Businesses in the “southeastern quadrant of the U.S.” will be the focus of TXSE.

James Lee expressed gratitude to Texas Governor Greg Abbott for his leadership and support. It also seeks to counter newer regulations including one that sets goals for board diversity at Nasdaq, as well as battle rising compliance expenses at NYSE and Nasdaq. It also aspires to draw listings of exchange-traded products.

Read More: Click Here