US Texas Plans New Stock Exchange Establishment with $120 Million Investment
The Wall Street Journal (WSJ) reported on the 4th (local time) that a new stock exchange is being planned in the state of Texas, USA.
The Texas Stock Exchange (TXSE) group announced that it has raised about $120 million (approximately 164.3 billion KRW) from investors including BlackRock and Citadel Securities to establish the new exchange. TXSE plans to submit documents to the U.S. Securities and Exchange Commission (SEC) by the end of this year, start its first trading in 2025, and proceed with its first listing in 2026.
TXSE positions itself as a CEO-friendly institution. Its strategy is to attract companies by addressing their complaints about compliance costs and board diversity targets imposed by Nasdaq and the New York Stock Exchange (NYSE).
WSJ explained that the background of this movement lies in changes in the corporate environment. Recently, dozens of companies have been relocating to states with favorable regulatory and tax policies. In particular, Texas is home to several of the Fortune 500 companies, including ExxonMobil, AT&T, and American Airlines. Goldman Sachs also held a groundbreaking ceremony last year for a Dallas campus that can accommodate more than 5,000 employees. CEO James Lee stated, "Dallas has become one of the most dominant financial centers in the U.S., if not the world."
Some opinions suggest that launching a new exchange will not be easy. This is because NYSE and Nasdaq effectively monopolize the market. In the past, there were the Boston Stock Exchange, Chicago Stock Exchange, and Philadelphia Stock Exchange, but all have since been absorbed by NYSE and Nasdaq. Attempts by IEX and the Chicago Board Options Exchange (CBOE) to enter the market have failed to gain momentum.
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WSJ pointed out that attracting trading to a new exchange is also difficult because traders send orders to the exchanges with the highest trading volumes. TXSE expects that having Citadel and BlackRock as investors will be helpful. Citadel is one of the world's largest electronic trading firms, and BlackRock is the world's largest asset management company. They have supported emerging exchanges such as Members Exchange (MEMX).
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