NEW YORK: A Texas businessman wants to launch a national stock exchange in Dallas starting next year, and so far he has raised about US$120 million for the project, with the backing of Wall Street heavyweights BlackRock and Citadel Securities.
The Texas Stock Exchange (TXSE) would see its first trades in 2025, and host listings from 2026, a spokeswoman for the initiative's organisers told AFP, confirming a plan that first appeared in The Wall Street Journal.
The financial markets sector in the United States is narrowly concentrated in the New York Stock Exchange and the Nasdaq, which together account for nearly all shares trading in the country.
The TXSE would be entirely electronic, like the Nasdaq, but would have offices in Dallas, the spokeswoman said.
The project is the brainchild of Texas financier James Lee, who has so far earned the support of more than two dozen investors, including "some of the largest financial institutions and liquidity providers in the world," a statement said.
That list includes BlackRock, the world's top asset manager, and market-making firm Citadel Securities.
Several companies have tried to propose alternatives to the NYSE and the Nasdaq, including the Members Exchange (MEMX) launched in 2020, but those only represent a small percentage of trade volume in the United States.Other small-scale markets include the Miami International Securities Exchange (MIAX) and the Boston Options Exchange (BOX), which only deals in derivatives, not actual shares.
The TXSE group plans to submit its registration to the Securities and Exchange Commission later this year, the statement said.
"TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets," Lee said in the statement.
Lee is hoping to capitalize on the rise of Texas in recent years as a favored destination for US companies looking for a friendlier business environment – drawn to the Lone Star State for its affordable real estate and favorable tax laws.
"Dallas has become one of, if not the most, dominant financial centers in the country, if not the world," Lee told The Wall Street Journal.
"Texas and the other states in the southeast quadrant have become economic powerhouses," Lee added in the statement.
"Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas."