Shutterstock / Frank Parker
Texas is home to more Fortune 500 companies than any other state in the United States.
With Texas Governor Greg Abbott implementing his own border policies and TEXIT gaining momentum within the state’s Republican Party, it might not be surprising to see the state take another step toward becoming a semi-autonomous region.
To that end, the Lone Star State plans to launch its own stock exchange.
Houston investor James H. Lee plans to launch a Texas stock exchange next year with a $120 million investment from asset managers BlackRock Inc. and Citadel Securities. The Wall Street Journal It was reported on Tuesday.
BlackRock has been at the center of numerous controversies, most notably recently being accused by a U.S. House of Representatives subcommittee of endangering U.S. national security by investing in blacklisted Chinese companies, while Citadel has paid millions of dollars in fines for trading irregularities and violations since 2014.
Still, the Dallas-based exchange operator hopes it can compete with the New York Stock Exchange and Nasdaq and is challenging those exchanges’ increasingly high compliance costs and new rules, such as setting diversity targets for boardrooms. journal Reports.
Lee, a 40-year veteran who worked at First Boston, E-Trade and the now-defunct Lehman Brothers, said he hopes the TXSE will see its first trades in 2025 and its first stock listings in 2026. Dallas Morning News.
“This is exciting and transformative,” Lee said. Morning News“Frankly, this could change the future of Dallas for decades to come. It’s the fate of this technology infrastructure, market participants and network effects that make Dallas a major financial hub.”
The TXSE will focus on attracting companies from Texas and surrounding states to list their stocks. Texas is home to more Fortune 500 companies than any other state in the U.S., with Charles Swabre, Tesla and Hewlett-Packard all relocating to the state in the past three years.
“Texas is already the ‘headquarters of corporate headquarters,’ home to 52 Fortune 500 companies and an ideal location for the nation’s newest stock exchange to challenge the current NYSE and Nasdaq duopoly,” the Texas Business Association said in a statement. “CEOs have consistently named Texas the best state for business for the past 20 years, and site selectors have consistently chosen Texas as the best state for new capital investment projects for 12 years.”
However, this is not Texas’ first foray into the world of financial markets.
Last year, Texas Capital Bank launched the Texas Capital Equity Index (TXS), an exchange-traded fund based on the value of publicly traded companies based in Texas, including ExxonMobil, Waste Management and American Airlines.
But the TXS Index has not received much attention in this bull market. Its shares have fluctuated between $24 and $28 since its inception last July.
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