After more than a year of intense discussion, the Texas Stock Exchange (TXSE) is officially becoming a reality. The exchange announced a major investment from JPMorgan, bringing its total pre-launch funding to over $250 million ahead of its planned launch in 2026.
This funding round has attracted more than 70 investors, including industry heavyweights like BlackRock, Charles Schwab, and Citadel Securities.
Challenging the Duopoly
The TXSE is set to become the first exchange in decades to be approved by the SEC with the dual capability of both listing companies and trading their stocks. This positions it as a direct challenger to the entrenched duopoly of the New York Stock Exchange (NYSE) and the Nasdaq.
Since 2008, these two incumbent venues have controlled nearly 100% of the public stock market in the U.S., which boasts a combined value exceeding $67 trillion. The Nasdaq, which held less than a third of the market in 2000, now accounts for 52% thanks to the massive growth of Big Tech.
Texas's Value Proposition
The new exchange promises to significantly lower the "burden of going and staying public" by offering a simpler and cheaper alternative to its competitors. This move is part of a broader push by Texas to increase its appeal to corporations. The state already established a business court in 2023 to directly compete with Delaware, where the majority of S&P 500 companies are currently incorporated.
The TXSE aims to capitalize on the ongoing corporate migration to the Lone Star State by providing a locally based, financially competitive listing venue.
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The Battle for Texas is On
The potential threat posed by the TXSE has not gone unnoticed by the incumbents.
Competition is already intensifying on Texas soil:
- NYSE announced plans to launch "NYSE Texas" in Dallas.
- Nasdaq is also opening a major headquarters in the area.
While the TXSE launch is still a year away, the capital raised and the high-profile investors involved signal a serious intent to disrupt the U.S. exchange landscape.
