The Texas Stock Exchange officially commenced trading on Monday morning.
Based in Dallas, TXSE began its phased rollout in July. The firm’s launch comes as major financial institutions, including BlackRock and Citadel Securities, have invested over $120 million in the new exchange since 2024. The exchange gained federal approval last year and attracted investment from several other firms, bringing total investment to more than $275 million.
TXSE opened its doors at 8:30 a.m. on Monday morning to approved brokers, banks, and trading firms. For now, brokers are trading only test stocks. Thousands of symbols, such as TSLA (Tesla), will come online in July, with an announcement to precede it. That rollout will officially allow the public to trade stocks on the exchange.
TXSE officials also hope to have exchange-traded products, or ETPs, trading by the end of the third quarter. ETPs allow investors to gain exposure to a wide variety of investment products, such as oil or the S&P 500.
While all trading is primarily done through electronic mediums, exchange locations still matter because brokers predominantly invest in local businesses. TXSE has the ingredients for success, including a large number of Fortune 500 companies that have recently relocated to Texas and a rapidly growing financial district in Dallas.
American financial institutions have long been centered around the New York Stock Exchange and the NASDAQ, creating a duopoly. Since the TXSE’s announcement, both the NYSE and NASDAQ have announced plans to open branches in the Dallas area, prompting TXSE officials to say the exchanges’ moves only further validate its own efforts.
Over the past 20 years, New York has seen a 16 percent growth in investment banking jobs, while Texas has seen a 111 percent increase.
The NYSE and NASDAQ both have incredibly strict requirements for a company to be publicly traded on the exchange. This can include regulatory compliance, corporate transparency, and financial solvency. This sets a high benchmark for corporations to meet, leading smaller companies to face significant challenges when attempting to go public on the NYSE or NASDAQ. TXSE can directly benefit from offering looser rules for open-market trading through the exchange.
“The center of gravity for American capitalism is now headquartered in the boom belt,” said Gov. Greg Abbott in an April press release. “The Texas Stock Exchange is the natural extension of that capitalism. It ensures that capital markets will reflect the quadrant that is driving American growth. The foundation is already built. The policies are already in place. Enjoy the success that so many have experienced and incorporate in the Boom Belt.”
