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Citadel and BlackRock collaborate on launching a national stock exchange in Texas

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BlackRock and Citadel Securities are among the investors supporting TXSE, a group looking to launch a new national stock exchange in Texas. The Dallas-based group has raised $120 million with the backing of over two dozen investors. TXSE CEO James Lee emphasized the incredible opportunities for businesses in Texas and the surrounding states due to their booming economies and strong population growth. The exchange aims to provide a more CEO-friendly alternative to the NYSE and Nasdaq, which have faced increased regulatory challenges and compliance costs.

A contentious Nasdaq rule requiring listed companies to disclose diversity information on their board of directors has sparked disaffection and is now facing a legal challenge in a federal appeals court. In response to these challenges, TXSE is positioning itself as a fully electronic, national securities exchange seeking registration with the U.S. Securities and Exchange Commission. The exchange is scheduled to begin trading in 2025 and host listings in 2026, targeting companies in the southeastern quadrant of the U.S.

The Dallas Morning News reported that TXSE has received support from Texas Governor Greg Abbott for its initiative. This backing underscores the favorable business environment in Texas and the state’s commitment to fostering economic growth and innovation. With the backing of influential investors like BlackRock and Citadel Securities, TXSE is poised to offer a new platform for companies seeking to access capital markets and attract investment.

The establishment of TXSE comes at a time when traditional stock exchanges are facing increased scrutiny and challenges due to regulatory changes and compliance requirements. TXSE’s emphasis on being more CEO-friendly and providing a streamlined, electronic trading platform could attract companies seeking to avoid the complexities and costs associated with listing on existing exchanges. By targeting businesses in the southeastern U.S., TXSE aims to tap into a vibrant and rapidly growing market while offering a more efficient and tailored trading experience.

As TXSE prepares to enter the competitive stock exchange landscape, its focus on innovation and customer-centric approach could differentiate it from established players. With the potential to offer a more agile and responsive platform for companies seeking to raise capital and access diverse funding sources, TXSE could attract a wide range of businesses looking for an alternative to traditional exchanges. By leveraging the support of influential investors and government officials, TXSE is well-positioned to make a significant impact on the financial industry and provide a valuable resource for companies in the region.

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