Get All Access for $5/mo

Texas Is Poised to Get Its Own Stock Exchange — With Less Red Tape Than the NYSE or Nasdaq Texas is home to more Fortune 500 companies than any other state, including Exxon Mobil, AT&T, and Phillips 66.

By George Glover

Key Takeaways

  • Texas is set to get its own stock exchange, The Wall Street Journal reported.
  • BlackRock and Citadel have backed the TXSE Group, which has raised $120 million, per the report.
  • The company plans to impose fewer rules and regulations than its New York-based rivals.
Pgiam/Getty Images via Business Insider

This article originally appeared on Business Insider.

Texas is set to get its own stock exchange to rival those in New York, The Wall Street Journal reported.

BlackRock and Citadel are among the backers of the TXSE Group, which has raised about $120 million from investors and plans to register with the Securities and Exchange Commission later this year, the group's CEO, James Lee, said.

He told the Journal the exchange would be based in downtown Dallas and aimed to open for trading in 2025.

The group's founders have pledged to have fewer rules and regulations than the New York Stock Exchange and the Nasdaq. Since gaining the SEC's approval in August 2021, the latter exchange has imposed diversity quotas on its constituents.

They're also hoping to appeal to large-cap companies' desire to incorporate in the Lone Star State, which has fewer regulations and more-favorable tax policies.

Texas is home to more Fortune 500 companies than any other state, including megacaps such as Exxon Mobil, AT&T, and Phillips 66.

Tesla CEO Elon Musk said in a post on X earlier this year that he'd call a shareholder vote on moving the electric-car maker's state of incorporation to Texas after a Delaware judge voided his $55 billion pay package.

Lee said that the TXSE would be apolitical, but its proposed launch comes at a time when conservative culture warriors have taken aim at mainstream financial markets.

The Republican presidential candidate Vivek Ramaswamy set up an "antiwoke" investing firm in 2022. Some GOP members have called for funds to pull their money out of BlackRock because of its environmental, social, and governance policies.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.

Business News

'Passing By Wide Margins': Elon Musk Celebrates His 'Guaranteed Win' of the Highest Pay Package in U.S. Corporate History

Musk's Tesla pay package is almost 140 times higher than the annual pay of other high-performing CEOs.

Business News

Joey Chestnut Is Going From Nathan's to Netflix for a Competition 15 Years in the Making

Chestnut was banned from this year's Nathan's Hot Dog Eating Contest due to a "rival" contract. Now, he'll compete in a Netflix special instead.


Are Your Business's Local Listings Accurate and Up-to-Date? Here Are the Consequences You Could Face If Not.

Why accurate local listings are crucial for business success — and how to avoid the pitfalls of outdated information.

Money & Finance

Day Traders Often Ignore This One Topic At Their Peril

Boring things — like taxes — can sometimes be highly profitable.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.