On Monday morning, business leaders met with Gov. Greg Abbott (R) in Austin to launch the Texas Stock Exchange.
The exchange's CEO said they have $135 million to get up and running.
“A stock exchange in Texas has long been a vision of mine. Today’s announcement is the next logical step," said Abbott at an event at the governor's mansion.
The organization has its leadership team and financial pledges in place. According to its founder and CEO, Jim Lee, the next major step is getting approval from the U.S. Securities and Exchange Commission, regulators in Washington, D.C.
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“Pending approval. We will execute our first trades at the end of next year and launch listings in early 2026," said Lee.
The Texas Stock Exchange, or TXSE, aims to compete with the larger New York exchange and the NASDAQ by offering lower fees to list stocks and more business-friendly rules to participate.
BlackRock and Citadel Securities stepped forward to be founding members.
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"BlackRock is proud to be a founding investor in the Texas Stock Exchange to increase liquidity and improve market efficiency for clients and other investors in the U.S. capital markets," a company spokesman wrote NBC 5.
University of North Texas finance professor Stephen Owen told NBC 5 that for the exchange to succeed, it needs two things: usable infrastructure and platforms and rules that encourage investor trust.
If investors know how to use the exchange and have faith that it will be free of fraud and risky situations, people will participate.
He said that major financial players only put their money in situations they believe are safe and reliable.
“What we want is investor protection, market integrity, nice risk management. And we want to ensure that they’re following the law," said Owen.
Owen is confident the Texas Stock Exchange can do those two things because of the major players involved and the different policies they plan to pitch.
“Try to make themselves more attractive to companies who have the choice to list their shares on any of them, and they try to create that competition and say, 'Hey, you should list with us because we have better incentives," said Owen.
