Texas’ economy has been hot, now it might get a stock exchange

Texas’ economy has been firing on all cylinders recently… and now the state might be getting its own national stock exchange, the TXSE — which could begin trading as early as next year, according to the Wall Street Journal.

Positioning itself as a more CEO-friendly alternative to the NASDAQ and NYSE, backers of the TXSE include some of the industry’s heavyweights, like BlackRock and Citadel, who want to cut down on compliance costs for listing on America’s largest incumbent exchanges. By headquartering itself in Texas, it also aligns with a new crop of companies that are seeking lower taxes, favorable regulations, and growth.

Last year, the Texan economy was one of the nation's fastest growing, with its GDP surging 5.7%, second only to North Dakota (5.9%). It also welcomed nearly half a million new residents and now boasts 52 Fortune 500 companies, tied with New York. Indeed, since the pandemic, a number of high-profile companies — including Tesla, Oracle, and HP — have moved to the Lone Star State, joining established Texas institutions such as ExxonMobil and AT&T.

New York has long reigned supreme as the center of trading, having absorbed regional exchanges like the Boston Stock Exchange, the Chicago Stock Exchange, and the Philadelphia Stock Exchange over the years. But, the emergence of the Dallas-based TXSE harks back to a time when exchanges dotted the nation, each vying for a slice of the trading pie. Indeed, starting a new exchange is hardly a novel idea, but, so far, other efforts like the Long-Term Stock Exchange have attracted only a handful of companies.