For decades, the New York City Stock Exchange (NYSE) and Nasdaq – another NY-based SE – have been the two predominant stock exchanges in the US. Having acquired several regional SE platforms in recent years, these two entities have amplified their influence across the US.
However, the birth of a new rising star in the US SE market has been announced – the launch of the Texas Stock Exchange.
Stock exchanges have been closely related to the economic success of the area in question. Given the number of globally present companies and heavily funded startups registered in the State of New York, it’s no wonder that NY hosts the two predominant SE centers.
Still, the exciting business events in the last couple of years have put some other parts of the US in the economic spotlight. The rise of Silicon Valley has made California the generator of tech business growth in the US and abroad. Interestingly, the billions of investments in technology closed in Palo Alto, Sunnyvale, and other picturesque Californian places haven’t boosted the local stock exchange markets.
What didn’t happen in California is highly likely to occur in Texas. Several investors and CEOs have joined forces around the afore-presented idea of launching a private stock exchange in Texas. The likes of Citadel Securities, BlackRock, and other similar household names are interested in starting the 17th such market in the US. They already have a buzzword name in mind: TXSE.
The arrival of a new business player in every game is followed by uncertainties or doubts. Some people hold stock trading similar to gambling: you can’t tell in advance where your investments will take you and both require significant legislation. Still, different from casino sites in Texas, which can’t be registered locally, but players can still turn to online offshore ones, the local stock exchange is highly likely to see the light of day soon.
Since Texas has emerged as one of the fastest-growing business markets in the US, gathering around such an initiative is a logical development of its propelling growth. Only in 2023, many companies relocated their headquarters to Texas, strengthening the state business community and opening new jobs. Some internationally acclaimed brands, like Tesla and the US branch of Toyota, also moved their business operations to Texas a few years ago. Toyota even built a true business and production campus in Plano, TX, where it unified several previously scattered operations. Such a congregation of established and new business names was a firm ground to build upon. This local stock exchange hub is aimed at serving those brands and fortifying the business strength of Texas.
The 16 existing American SEs are dominated by the NYSE and NASDAQ, which on average make for 20% and 15%, respectively, of monthly equity trading. The rest of the SE stock trading volume is in some way influenced by these two markets.
The opening of the TXSE, which will probably be headquartered in Dallas, as the meeting point of the old Texan money and exciting new businesses, should stir up this distribution of investments, putting Texas onto the global map of propulsive business hubs.
