Citadel and BlackRock are backing a project to create a national stock exchange in Texas

BlackRock and Citadel Securities are among the investors backing a group seeking to create a new national stock exchange in Texas.

 

TXSE Chairman and CEO James Lee said the Dallas-led group has raised $120 million with backing from more than two dozen investors.

 

"Texas' booming economy and strong economic and demographic growth among states in the southeastern quadrant of the U.S. present incredible opportunities for businesses - and ultimately for the Texas Stock Exchange," TXSE CEO James Lee said on LinkedIn.

 

The Wall Street Journal has previously reported on the endeavor, saying the exchange is positioning itself as a "more executive-friendly" alternative to the New York Stock Exchange and Nasdaq in the face of increased regulation and "frustration with rising compliance costs."

 

The challenged Nasdaq rule requires listed companies to disclose board diversity. The SEC approved the plan in 2021, but it now faces a new challenge in a federal appeals court.

 

TXSE's website says it will be "an all-electronic national securities exchange that will seek registration with the SEC." According to the Journal report, TXSE plans to begin trading in 2025 and listings in 2026.

 

The Dallas Morning News reported that the TXSE will target companies in the "southeastern quadrant of the U.S." In an interview with the newspaper, Lee thanked Texas Gov. Greg Abbott for his support and leadership.