Blackrock, Citadel back an effort to launch a ‘more CEO-friendly’ stock exchange

TXSE Group, a group backed by BlackRock (NYSE:) and Citadel Securities, intends to establish a new national stock exchange in Texas. Led by Chairman and CEO James Lee, TXSE has raised $120 million from over two dozen investors.

“Texas’s booming economy and the strong economic and population growth among states in the southeast quadrant of the U.S. present incredible opportunities for businesses — and ultimately the Texas Stock Exchange,” Lee said in a LinkedIn post.

The Wall Street Journal first reported on the project, describing the Texas Stock Exchange as a “more-CEO friendly” alternative to the New York Stock Exchange and Nasdaq. This positioning comes in response to increasing regulation and growing concerns about compliance costs.

One specific regulation in contention is a Nasdaq rule that mandates listed companies disclose board diversity information. Although the SEC approved this rule in 2021, it is currently under review by a federal appeals court.

According to the official press release, TXSE plans to be a “fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission.” The exchange aims to start trading in 2025 and begin hosting listings in 2026, as reported by the Journal.

“Texas and the other states in the southeast quadrant have become economic powerhouses,” Lee said. “Combined with 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 stock exchange in Texas.”