HomeFinancial MarketsBlackRock and Citadel Securities Plan to Set Up a Texas-Based Stock Exchange

BlackRock and Citadel Securities Plan to Set Up a Texas-Based Stock Exchange

A group led by investment company BlackRock and market-making firm Citadel Securities has recently unveiled plans to set up a new national stock exchange that would be based in Texas.

According to a report by The Wall Street Journal, the Texas Stock Exchange (TXSE) aims to provide an alternative to New York-based exchanges like Nasdaq and New York Stock Exchange (NYSE) and their “onerous regulation” and “increasing compliance costs.” It also promises to be “more CEO-friendly.”

TXSE has already raised around $120 million thanks to contributions from individuals and large investment firms. It plans to register with the Securities and Exchange Commission (SEC) in late 2024 with a goal to open trading at some point in 2025.

The backers of Texas-based stock exchange are hoping to exploit a shifting landscape in which more companies are flocking to the state thanks to looser regulations and more favorable tax policy.

“Dallas has become one of, if not the most, dominant financial centers in the country, if not the world,” TXSE CEO James Lee told the Wall Street Journal.

TXSE is facing a tough challenge to attract the interest of investors. A number of new stock exchanges have tried to get off the ground in recent decades but haven’t had much success. It remains to be seen whether TXSE does a better job.

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