A new splinter national stock exchange has raised money to launch in Texas with an offer of looser regulation than the New York Stock Exchange and Nasdaq.
The new Texas Stock Exchange group has raised approximately $120 million, backed by Wall Street heavyweights BlackRock and Citadel Securities, according to reports.
The Texas Stock Exchange plans to file registration documents with the Securities and Exchange Commission later this year, to start trading in 2025 and welcome a first listing in 2026, TXSE Group CEO James Lee told The Wall Street Journal.
A handful of sizeable regional stock exchanges in Boston, Chicago, Los Angeles and Philadelphia that served regional markets were acquired by the NYSE and Nasdaq in the past two decades, most recently the Chicago Stock Exchange and Chicago's National Stock Exchange, which were snapped up by NYSE in 2019 and 2017 respectively.
There was a Texas stock exchange established in the 1930s in Houston, which aimed to provide a local trading platform for Texas-based companies, but the Houston Stock Exchanmge struggled to compete with larger national exchanges and eventually closed.
Other exchanges such as IEX and Chicago Board Options Exchange still exist but are dwarfed by the New York giants, while the Long-Term Stock Exchange that got the SEC green light in 2019 has only amassed two listings.