BlackRock, Inc. (BLK) and Citadel Securities are two of the investors supporting the TXSE Group Inc. (TXSE) in establishing a new US money market, the Texas Stock Exchange (TXSE).
BlackRock and Citadel To Support Local Texas Stock Exchange
This proposed exchange will offer a platform for the listing and trading of US equities and exchange-traded assets. TXSE’s founder and CEO, James Lee, indicated the Dallas-based group raised $120m through more than 24 investors, which included Blackrock, Citadel, and other noted business individuals. In a LinkedIn statement, he wrote:
Texas’s booming economy and the strong economic and population growth among states in the southeast quadrant of the US present incredible opportunities for businesses — and ultimately the Texas Stock Exchange.
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TXSE will apply for approval and registration with the US Securities and Exchange Commission (SEC) as a completely electronic, national trade market. According to analysts, movements in the equity markets create an opening for competition as issuers and exchange-traded asset backers want greater certainty about listing protocols and expenses.
The new stock exchange will reportedly improve access to US capital markets, which includes better alignment for listed companies. According to PR Newswire, Lee stated:
Changes in equities trading markets are driving more volume to exchanges and more choices for issuers and sponsors. TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike.
Texas, which boasts more Fortune 500 firms than other states, is a booming economic hub, and it seems to be the logical setting for a new US stock exchange. Based on PR Newswire data, there are over 1,500 publicly listed companies in Texas.
