Things seem full steam ahead for the new Texas Stock Exchange, which has already attracted a long list of high profile business, finance and government leaders. Distinguished members slated to be part of their leadership team include former Texas Gov. Rick Perry and Dallas Federal Reserve President Richard Fisher.
During a recent press conference, CEO James Lee announced the exchange plans to launch from Dallas in late 2025, with trading beginning early 2026. The Dallas-based Texas Stock Exchange is positioning itself to challenge the New York-dominated trading industry.
Texas’s Governor Greg Abbot celebrated the state’s historic economic milestone during a press conference at the Governor’s Mansion in Austin.
“Texas has become the home of capital in the United States,” said Governor Abbott. “Today, our great state is staking claim as a home of capital markets with the addition of the Texas Stock Exchange. This is another step that expands our financial might in the United States and cements our economic power on the global stage. The Texas Stock Exchange will ensure that businesses have access to capital and that market participants have more choices. Texas is the modern embodiment of the American Dream, where everyone has an opportunity to succeed, and the Texas Stock Exchange will ensure even more businesses have that opportunity.”
Texas’s Healthy Business Climate
The venture sends a strong sign to Texas’ healthy economy and could help assure the state’s status as the country’s new financial hub. A slew of large business entities have already made the move to Texas, including ExxonMobil, American Airlines and Elon Musk’s X and SpaceX. The state’s Gross Domestic Product has continued to remain strong, reaching 2.03 trillion U.S. dollars in 2023.
Texas finance experts including Adam Ferrari, CEO of Phoenix Capital Group, feel the new stock exchange may foster healthy competition.
“Competition is essential for business—it keeps innovation alive and drives growth. New York’s dominance over the public markets is something that, frankly, doesn’t need to continue. They’ve built a reputation for being somewhat hostile toward private businesses, and that can really stifle companies looking to expand. Texas, on the other hand, offers a more CEO-friendly environment with regulations that are more focused on fostering business growth. And let’s face it, some of the issues in New York, especially with the political climate and overreach, have become problematic,” said Ferrari. “The introduction of a Texas-based stock exchange could not only bring healthier competition but also help businesses avoid some of the legal and regulatory entanglements they might face in New York.”
Stellar Leadership Team
The TXSE has a long list of prominent individuals on its leadership board including Vice Chairman at BlackRock, Mark McCombe; former Dallas Federal Reserve president Richard Fisher, and Rick Perry, who was also the secretary of energy. Financial professionals from the New York Stock Exchange were also brought aboard to aid in recruiting companies to join the stock exchanges.
The new stock exchange’s ability to attract companies is up for debate, but some experts feel it could be a win-win for initial listings.
“For certain companies, it’s probably more about getting attention, access to capital and resources. If you’re an early adopter on the Texas Stock Exchange versus listing on the New York Stock Exchange, you’re likely to get a certain level of attention and service, and greater access to investors, simply because you’re a bigger fish in a smaller pool,” said Scott Simari, Principal at Sendero Consulting.
Texas Pro Business Culture
The governor said another aspect to Texas’s big business draw is the state’s pro-business attitude, lower taxes and overhead, and less stringent regulation. Elon Musk cited lower operating costs, less restrictions, lower taxes and more affordable housing for employees as primary factors in moving Tesla’s headquarters to Austin.
The majority of Texans support the idea of a homegrown stock exchange.
“When this announcement was made, everyone started calling it Yall Street instead of Wall Street. So people are excited about Yall Street,” said Simari. “It’s a trend we’re seeing in other areas too. Especially in the major cities like Dallas, Austin and Houston. A growth in the innovation sector and startup culture, especially when it comes to healthcare and energy. It’s really been taking off.”
Texas has already enticed a slew of large U.S. companies to make the move to the state including Exxon, McKesson, American Airlines, Southwest Airlines, which are all headquartered in the Lone Star state.
TXSE has already raised $135 million and has the support of backers from BlackRock and Citadel Investments. The new stock exchange also pledges to implement stricter listing standards than its New York rivals.
