In a groundbreaking move that highlights Texas’ growing influence in the financial sector, Texas is on the verge of establishing its first national stock exchange. Led by James Lee, an experienced entrepreneur and financier, the Texas Stock Exchange (TXSE) successfully raised approximately $120 million from individual investors and large firms. With plans to file registration documents with the Securities and Exchange Commission (SEC) later this year, the TXSE aims to start trading by late 2025 and list its first companies by early 2026.

The formation of the TXSE comes at a time when many companies are expressing dissatisfaction with the escalating compliance costs associated with the NASDAQ and the New York Stock Exchange (NYSE). Leveraging Texas’s favorable regulatory and tax environment, the TXSE hopes to attract companies that are looking for a competitive alternative.

Texas stands as an ideal location for the newest stock exchange. The state is currently tied with New York for the second-highest number of Fortune 500 companies, with 52 headquartered, behind only California. Once fully operational, the exchange will employ 100 employees in the Dallas area, adding further economic growth and job creation.

TXSE will primarily serve as a new listing venue for public companies, exchange-traded products, and American depositary receipts (ADR) in the Southeast U.S., focusing on Texas, Oklahoma, and the southeastern quadrant of the United States, including Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Tennessee, and the Carolinas. By concentrating on this region, the TXSE hopes to become the third-largest listing venue in the U.S.

The state’s business-friendly environment has consistently attracted companies to relocate their headquarters and capital investments to Texas. Additionally, as the eighth-largest economy globally, Texas continues to lead the nation in exporting goods and attracting foreign direct investment.

The Texas Stock Exchange represents a bold step forward in the progression of Texas as a financial powerhouse. By offering a competitive alternative to existing exchanges and capitalizing on the state’s favorable business climate, the TXSE is well positioned to attract a diverse range of companies and investors, driving economic growth and innovation in the state for years to come.