From: allin
A new stock exchange, the Texas Stock Exchange (TXSE), is emerging with backing from major financial players like BlackRock and Citadel [00:58:47]. This initiative aims to challenge the established duopoly of the New York Stock Exchange (NYSE) and NASDAQ [00:58:51].
Overview of the TXSE
The Texas Stock Exchange will be based in Texas [00:58:57] and has already raised $120 million [00:59:03]. Its core pitch is that the NYSE and NASDAQ have become overly expensive [00:59:07] and have increased compliance costs [00:59:10]. Notably, NASDAQ introduced a new board diversity target at the beginning of the year [00:59:15], which has been described as “DEI stuff” [00:59:19]. In response, the TXSE positions itself as a “CEO-friendly” and “anti-woke exchange” [00:59:21].
Timelines and Support
The TXSE plans to file its SEC registration documents later this year [00:59:26], begin facilitating trades next year [00:59:28], and host its first new listing in 2026 [00:59:30]. The involvement of Citadel and BlackRock is significant, as they can bring substantial business to the new exchange [00:59:35]. This move aligns with a broader trend of companies relocating to Texas, such as Tesla moving its corporate headquarters from Palo Alto, California, to Texas in 2021 [00:59:42].
Rationale for a New Exchange
Proponents argue that more competition is needed to provide companies with better access to capital [00:59:58]. The existing duopoly of NASDAQ and NYSE is criticized for a lack of innovation [01:00:15] and for implementing “regressive” listing requirements, particularly concerning board composition that doesn’t align with economic rationale or value [01:00:26].
“I do think that it’s hard right now for companies to get access to Capital. I think more diverse and more flexible ways where smart investors can allocate their money into the ideas that they want are better.” [00:59:58]
It’s noted that NASDAQ and NYSE have imposed rules unrelated to securities laws, including those on board diversity [01:01:05], leading to quiet pushback from public company board members and CEOs [01:01:27].
The cost of going public is another factor; a survey showed that listing on NASDAQ or NYSE costs about 2 million for an over-the-counter bulletin board service [01:01:47]. This highlights the demand for a more competitive marketplace for exchanges [01:02:07].
Challenges and Precedents
While the emergence of a new challenger exchange is not unprecedented—with previous attempts like the Long-Term Stock Exchange failing to gain traction [01:02:11]—the current effort is seen as positive for increasing competition [01:02:30]. The discussion of these market dynamics links to broader concerns about the role of platforms and regulators in market disruptions.