Texas is a major business hub and is a leading contributor to the US economy. Nate Hovee/Pexels.com
Posted on 06/07/2024 9:46:49 AM PDT by SeekAndFind
Texas is a major business hub and is a leading contributor to the US economy. Nate Hovee/Pexels.com
A new stock exchange in Dallas, Texas, is set to begin securities trading next year, with plans to start listing companies by 2026. The Texas Stock Exchange (TXSE) Group has secured $120 million in funding from over two dozen investors, including Larry Fink's Blackrock and Kenneth Griffin's Citadel, making it "the most well-capitalised exchange entrant to file a registration with the US Securities and Exchange Commission (SEC)."
The fully electronic TXSE will list various securities, including exchange-traded products and American Depositary Receipts (ADR) for non-US firms. The physical headquarters in Dallas is expected to employ around 100 people, according to The Dallas Morning News.
The exchange aims to offer a business-friendly environment by challenging new costly regulations and rising compliance expenses at incumbents like the New York Stock Exchange (NYSE) and Nasdaq. For instance, Nasdaq's rule mandates companies listed on the exchange to divulge details about board diversity and explain why the board doesn't have "diverse directors."
The TXSE is well-positioned to address a worrying trend in the US corporate sector. Factors like high litigation costs, stringent disclosure mandates, intensifying shareholder activism, and public criticism have kept many private firms from going public. By staying private, companies have avoided much of the burden and cost of regulatory requirements to focus on future roadmaps.
In the US, the number of public firms has fallen by over 50% since the '90s, as many are increasingly choosing to stay out of the public eye and influence of public markets.
In his April shareholder letter, JPMorgan CEO Jamie Dimon expressed concern about shrinking public markets. "This trend is serious and may very well increase with more regulation and litigation coming. Along with a frank assessment of the regulation landscape, we really need to consider: Is this the outcome we want?" he wrote.
There have been past attempts at regional stock exchanges, like the Chicago Stock Exchange and the Philadelphia Stock Exchange. Still, many have either failed or merged with the industry leaders. As trading volumes remained concentrated between the NYSE and Nasdaq, it created hurdles for low-volume exchanges to secure substantial orders from investors.
The TXSE Group acknowledged that "corporate issuers and exchange-traded product sponsors" seek more "stability and predictability" around listing rules and related costs. They see this growing shift in US equities markets as an opportunity to grab market share in a sector where the NYSE and Nasdaq dominate trading volumes.
TXSE Group CEO James Lee believes that this dynamic scenario, where more investors and companies are looking for alternatives to trade and list equities, is driving more volumes to exchanges. He added that the Texas exchange will drive competition around "quote activity, liquidity, and transparency" to create "reliable markets that benefit investors and global issuers."
The state and its southeast quadrant neighbours form an economic powerhouse driving economic expansion in the US. As a major business hub, there are over 5,200 private equity-funded companies and 1,500 listed firms across the region. Many private firms are already planning for public listings, and the TXSE can become their preferred gateway to public markets.
While the TXSE Group highlighted that Texas accommodates more Fortune 500 companies than any other state, Lee said, "We're thrilled to bring to fruition the long-held vision for a national stock exchange in Texas" and that "this is an opportune time to build a major, national stock exchange in Texas."
Trojan Horse to turn Texas blue. DEI, CRT, ESG, etc. Here they come!
Texas is establishing a base for when New York’s financial community leaves the city for Dallas or Miami. Dallas is putting in its claim first.
Citadel and Blackrock are the Evil Empire, iinm.
how much rigging will it endure?
Miami has hurricanes, why would you put it there?
Has the SEC approved this exchange?
If they are offering themselves as an alternative to the existing exchanges with all their DEI requirements, I wouldn’t be surprised of the SEC is having a lot of backdoor pressure put on them to block this.
Florida, like Texas, has no state income tax. A number of New York firms have already debarked for Miami.
Its sponsor is black rock, the king of DEI, ESG, and general woke BS.
Trojan Horse
Miami has hurricanes, why would you put it there?
—
Dallas has hurricanes and tornadoes
Still, one cannot ignore the fact that NY regulations are strangling these businesses.
The motivation to pull up steaks out of New York State and especially New York City should be commended by those on our side, not condemned.
Just my $0.02.
BlackRock is antitrump. I’m sure the other is just as bad
And Dallas has fire ants.
I'll commend them for moving to Texas and leaving their statist goals back in New York where they belong.
I cannot commend anybody for bringing their statist politics into Texas and turning Texas blue.
What's commendable about Blue State Texas, anyways? I'm at a loss for words.
I’ve never heard of a hurricane in Dallas, by the time it gets there, it will be a Tropical Storm or Depression. And tornadoes affect only a relatively small area.
Never Trust Larry Fink or Blackrock.
They have already driven up the housing cost in Texas, milking the people fleeing a Blue State and looking for shelter in hard times.
They moved into areas bought up a lot of homes fixed up part of them and started creeping the price. People selling CA coming to Texas had lots of money to spend.
Do a little home work.
How BlackRock Conquered the World (Sep 19, 2023)
https://www.corbettreport.com/blackrock/
I don’t need to to do any homework on black rock.
I’ve been on the board of directors of a number of public companies and am deeply entrenched in the private equity side of oil.
They’re bad news.
OK. I meant no offense.
Had commented on two similar threads about the Texas Stock Exchange idea. Am still trying to remember why I wrote what I did to you.
I’m glad that you have that experience and understand how Fink operates.
Private companies in a number of Industries (Ranching, Lumber, Oil, Distribution) once had their own code of ethics. Some still do today, but there are a lot of large multinational corporations that don’t have that.
My father’s cousin married a Petroleum Engineer. They lived in Midland for a long time. He was a great guy, he and his wife are both dead now. They were stockholders in Republic Bank, and we talked about that when it failed during the oil slump. They held quite a bit of petroleum assets to.
Like a lot of people on FR, I am alarmed about the globalist power grab that the Davos crowd were/are trying to force on the world.
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