Posted on 06/06/2024 6:49:39 AM PDT by vikingd00d
A group of financial firms and investors is planning to launch a Texas-based private market stock exchange and offer traders an alternative to the New York Stock Exchange and Nasdaq.
The group, which includes BlackRock, Citadel Securities and about two dozen investors, raised approximately $120 million of capital to create the Texas Stock Exchange, which would be headquartered in Dallas. They are now seeking registration with the U.S. Securities and Exchange Commission to operate as a national securities exchange later this year.
“Texas and the other states in the southeast quadrant have become economic powerhouses. 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,” said James Lee, founder and CEO of TXSE Group.
Stock exchanges are private institutions where stocks, bonds and other securities are traded. If the SEC clears TXSE to begin operations, it will be the first stock exchange to launch in the country in recent years.
According to the Wall Street Journal, which first reported on the creation of the new exchange, TXSE promises to be more CEO-friendly than other exchanges and wants to capitalize on discontent over new rules and rising compliance costs at Nasdaq and NYSE.
“If we look at the three states with the largest economy, New York has two stock exchanges. Texas, comparably to California, is growing economically and demographically really fast, and already has a big number of Fortune 500 biggest companies headquarters, so it makes sense Dallas would be an ideal place,” said Steven Pedigo, a professor at the University of Texas at Austin’s LBJ School of Public Affairs and an expert in economic and urban development.
But it could be difficult for a new exchange to take off in the U.S. listings market, where the Nasdaq and NYSE have dominated for decades. The U.S. exchange business consists of about 16 equities exchanges with NYSE accounting for more than 20% of the volume in equities trading in May and Nasdaq over 15%, according to Bloomberg. Nasdaq acquired the Philadelphia Stock Exchange and Boston Stock Exchange, two of the oldest exchanges in the country, in 2007. The NYSE bought the Chicago Stock Exchange in 2018.
“What makes this project interesting is the big companies that supported and financed the new stock exchange, that is why it could be a serious competitor. But it is a ‘to be continued’ story,” Pedigo said.
TXSE founders said they chose Texas as the home for the new national securities exchange because of the state’s rapid economic and population growth. Texas has been a leader in attracting business relocations and expansions in recent years. More than 7,200 firms relocated to Texas between 2010 and 2019, creating nearly 103,000 jobs, according to data from the Federal Reserve Bank of Dallas. Businesses that relocated to Texas mostly went to the state’s major metropolitan areas, with Dallas and Houston being the favored destinations.
Major corporations like Tesla and Toyota have chosen the state as their new home base in recent years. Big financial companies like Goldman Sachs have also made big investments lately in Dallas.
Pedigo said this new stock exchange wouldn’t necessarily lead to more jobs being created in the state but would help further bolster the pro-business image Texas has been working on for years.
Excellent idea. The parallel economy in action. There’s no reason to do business with the left. They hate us.
Divest from NYC in any way you can.
Some of this seems to be a reaction to the officious wokeness of NYSE and Nasdaq.
Richard Baris talked about this yesterday. This sounds good but is actually not a good thing. The one behind this is Ken Griffin. It will bring a whole bunch of Leftists into Texas.
The silicon chip has made physical stock exchanges obsolete.
A ping out to the Texas Ping list, founded by Windflier.
Not sure if I am for it or against it, but money does have a way of talkin. Just sayin.
Another special Texas summer edition for your perusal.
As always, please FReepmail me if you want on or off the Texas Ping list.
Blessings, and stay cool!
I may be missing something here, but it looks like the majority of these investors were the ones pushing the diversity requirements. I understand NY is a hell hole, but couldn’t these same investors just divest from DEI without creating a new exchange?
>>The silicon chip has made physical stock exchanges obsolete.
Precisely, stock exchanges can now compete for companies.
It’s all about the NY taxes and legal system.
I’m sure this has nothing to do with the corrupt courts in ny. /s
Exactly. And BlackRock is one of the other major financial titans pushing for this. Remember it’s BlackRock that’s been pushing immoral and destructive ideologies like DEI and ESG (or whatever the letters are) on the companies they’ve captured.
>> I understand NY is a hell hole, but couldn’t these same investors just divest from DEI without creating a new exchange?
There’s a LOT of DEI and ESG infrastructure built into the exchange rules which have ossified into fiefdoms, making it difficult to dis-entangle.
for example, as a condition for doing business:
Nasdaq Rule 5605(f) generally requires companies listed on Nasdaq’s U.S. exchange to have at least two diverse directors, including:
* One self-identified woman director
* One director who self-identifies as an underrepresented minority (defined below) or as LGBTQ+
If a company does not satisfy both of these criteria, the company must:
* Specify the particular aspect(s) of board diversity it fails to satisfy
* Provide the reasons why it does not have two diverse directors
I want in.
“Divest from NYC in any way you can.”
The whole Northeast really.
Except with Blackrock in the lead, it will be even worse.
I agree, Texas is the best state in the Union. Space, medicine, oil and gas, pure excitement! Love Texas. I live in the second best state, North Carolina, but there is no industry here.
What Texas needs is their own currency, so that they can disconnect from the feds (totally illegal, of course), and then move on to other, similar stuff, like having their own credit card system, communications system, etc.
Of course none of that will never happen...but it’s fun to dream!
When a former President is indicted for a minor accounting error it’s time to exit the corrupt NY system all together.
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