A plan to develop a new U.S. stock exchange in Texas is gaining momentum as leading asset managers and hedge funds throw their support behind the initiative.
According to media reports, asset manager BlackRock (BLK) and hedge fund Citadel Securities are backing plans for a Texas-based stock exchange that will compete against the New York Stock Exchange (NYSE).
A Dallas-based group that is spearheading the plans for the new stock exchange say they have raised $120 million U.S. with the support of more than two dozen organizations.
A report in The Wall Street Journal says that representatives are positioning the new Texas Stock Exchange as a “more-CEO friendly” alternative to the NYSE and Nasdaq exchanges.
The move to start a national stock exchange in Texas comes as increasing regulations and rising compliance costs draw the ire of some investors and institutions.
A recently enacted Nasdaq rule, for example, requires that companies listed on that exchange disclose diversity information about their board of directors. That rule is being challenged in U.S. federal court.
A website that has launched for the Texas Stock Exchange says it will be a “fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission (SEC).”
The Texas exchange plans to formally launch and begin trading in 2025. By 2026, it hopes to start hosting initial public offerings (IPOs).
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