A new national stock exchange could be coming to Texas. Here's what we know.
Capital giants BlackRock and Citadel Securities are among the headline investors in a group that is seeking to bring a new national stock exchange to the Lone Star State.聽
James H Lee, chairman and CEO of Texas Stock Exchange, says the group leading the project has already raised $120 million.聽
鈥淲ith the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national exchange in Texas,鈥 Lee said via LinkedIn.聽
The Texas Stock Exchange would be headquartered in Dallas, a finance powerhouse in the state, and Lee said that the project already has more than two dozen investors.聽
On Wednesday, the TXSE group announced its intent to seek registration with the U.S. Securities and Exchange Commission. TXSE would focus on enabling U.S. and global companies to access U.S. equity capital markets and would provide a venue to trade and list public companies and the growing universe of exchange-traded products.
"TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike,鈥 Lee said in a news release.聽
Why was Texas chosen as the site of the new stock exchange?
Texas was chosen as the site of the new stock exchange because of its blistering economic growth and because of the economic growth of states surrounding it.聽
A news release from TXSE also pointed out that Texas is home to more Fortune 500 companies than any other state and more than 5,200 private equity-sponsored companies. In addition, there are more than 1,500 publicly traded companies throughout the southeastern quadrant of the U.S. Investors in the new exchange are hoping to capitalize on the many companies that are preparing to access the public markets.
Beck Andrew Salgado covers trending topics in the Austin business ecosystem for the American-Statesman. To share additional tips or insights with Salgado, email Bsalgado@gannett.com.