The Texas Stock Exchange (TXSE) is targeting a 2026 launch after filing paperwork to become a national securities exchange, its parent company announced on Friday.
The company aims to secure approval from the U.S. Securities & Exchange Commission by the end of the year as it looks to challenge the dominance of New York’s financial markets.
TXSE’s proposed mission is to counter the declining number of publicly traded companies by addressing what it describes as the high costs associated with going public and maintaining a listing.
"This marks a significant step forward," said Anne Peetz, a Houston-based capital markets attorney at Reed Smith LP.
Since its backers unveiled plans for the exchange last summer, details have been scarce. The recently submitted Form 1 application, which outlines trading operations, listing requirements, fees, and other key aspects, may not be publicly accessible for several weeks.
Alongside the filing, TXSE announced it has raised $161 million in funding from over four dozen investors. The backers include major financial players such as BlackRock, Citadel Securities, Charles Schwab, and prominent U.S. market makers and trading firms like Jump Trading.
"It's an intriguing concept," said Schwab CEO Rick Wurster, who noted that the exchange could provide additional options for the firm and its clients.
A Challenger to NYSE and Nasdaq
TXSE is positioning itself as a competitor to the New York Stock Exchange and Nasdaq, the two dominant securities marketplaces in the U.S.
The exchange’s headquarters will be housed in a new building in Dallas, which will feature executive offices, a conference center, and an “iconic bell-ringing venue,” according to a TXSE fact sheet.
Despite its ambitions, some analysts believe the exchange faces an uphill battle. Two market structure experts, who spoke anonymously because they were not authorized to discuss the venture publicly, said TXSE will need to offer compelling advantages to attract listings.
The challenge is not unprecedented. IEX, another alternative exchange, spent four years attempting to lure publicly traded companies before ultimately abandoning the effort in 2019.
"This is an intensely competitive space," said Peetz. "Companies considering TXSE will need to see that it offers the same or better advantages than its rivals."
Texas Governor Greg Abbott has voiced strong support for the exchange, stating in September that TXSE would bolster the state’s financial influence and solidify its standing in the global economy. In recent years, several high-profile firms—including Elon Musk’s Tesla—have relocated their headquarters to Texas, citing a more business-friendly environment.
