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- Texas is set to get its own stock exchange, The Wall Street Journal reported.
- BlackRock and Citadel have backed the TXSE Group, which has raised $120 million, per the report.
- The company plans to impose fewer rules and regulations than its New York-based rivals.
Texas is set to get its own stock exchange to rival those in New York, The Wall Street Journal reported.
BlackRock and Citadel are among the backers of the TXSE Group, which has raised about $120 million from investors and plans to register with the Securities and Exchange Commission later this year, the group's CEO, James Lee, said.
He told the Journal the exchange would be based in downtown Dallas and aimed to open for trading in 2025.
The group's founders have pledged to have fewer rules and regulations than the New York Stock Exchange and the Nasdaq. Since gaining the SEC's approval in August 2021, the latter exchange has imposed diversity quotas on its constituents.
They're also hoping to appeal to large-cap companies' desire to incorporate in the Lone Star State, which has fewer regulations and more-favorable tax policies.
Texas is home to more Fortune 500 companies than any other state, including megacaps such as Exxon Mobil, AT&T, and Phillips 66.
Tesla CEO Elon Musk said in a post on X earlier this year that he'd call a shareholder vote on moving the electric-car maker's state of incorporation to Texas after a Delaware judge voided his $55 billion pay package.
Lee said that the TXSE would be apolitical, but its proposed launch comes at a time when conservative culture warriors have taken aim at mainstream financial markets.
The Republican presidential candidate Vivek Ramaswamy set up an "antiwoke" investing firm in 2022. Some GOP members have called for funds to pull their money out of BlackRock because of its environmental, social, and governance policies.