BlackRock and Citadel Back New Texas Stock Exchange

BlackRock Inc. and Citadel Securities are supporting a new Texas Stock Exchange (TXSE), challenging the dominance of the New York Stock Exchange and Nasdaq. The TXSE has raised $120 million and plans to file with the U.S. Securities and Exchange Commission. 

The exchange, headquartered in Dallas, aims to attract companies seeking relief from high compliance costs. It will focus on providing U.S. and global companies access to U.S. equity capital markets and plans to facilitate the trading and listing of public companies and exchange-traded products.

CEO James Lee stated that the exchange aims to handle its first trades in 2025 and host its first listing in 2026. BlackRock supports the project because it has the potential to “increase liquidity and improve market efficiency.”

The new exchange faces competition from about 16 existing equities exchanges. NYSE and Nasdaq accounted for over 35% of U.S. equities trading volume in May. Similar initiatives include MEMX, which captured 2.4% of U.S. equities volumes in May, and MIAX, with 1.7%.

For more information, read the full article on Bloomberg.