Reaction is coming in from across the country after investors announced plans to open a new national stock exchange based in Dallas. NBC 5’s Keenan Willard has more.
Reaction is coming in from across the country after investors announced plans to open a new national stock exchange based in Dallas.
The Texas Stock Exchange has $120 million in funding lined up, and its leaders hope to compete with the major stock markets in New York.
Amid optimism over the potential economic impact a stock exchange could bring to the DFW area, local experts told NBC 5 the project still had hurdles to clear before it could compete with the hundreds of billions traded daily on the NASDAQ and NYSE.
On Tuesday, an ownership company called TXSE announced it was moving forward with the Texas Stock Exchange, hoping to rival New York markets by 2026.
Get top local stories in DFW delivered to you every morning. >Sign up for NBC DFW's News Headlines newsletter.
“With Texas’s booming economy, pro-business policies, and growing population, the right moment has finally come,” TXSE said in a statement announcing the move.
“There’s a lot of energy and a lot of excitement in the area right now,” said Ray Perryman, President of The Perryman Group.
Perryman, a renowned economist, said the Lone Star State is a desirable place to build a new stock market.
Local
The latest news from around North Texas.
Data showed in 2023, Texas became home to more people working in finance than the state of New York, and the state led the nation in job creation and the number of Fortune 500 companies based within its borders.
And recent economic growth has attracted companies like Hewlett-Packard and Tesla to relocate their headquarters here.
“Texas is very attractive; it brings in a lot of corporate interests, and there’s already a large wealth base in the Dallas area,” said Perryman. “So there are a lot of things that say this could well work.”
NBC 5 wanted to know if this new market would impact the money of people living in Dallas-Fort Worth who are already invested in the New York stock markets.
“It sounds exciting, but to the average investor, this is not going to have any immediate impact,” said Bill Dendy, President of Alicorn Investment Management.
Dendy said multiple steps needed to be cleared before this proposed exchange could go online. The Texas Stock Exchange would have to be cleared by the US Securities and Exchange Commission and secure insurance protections for money invested by consumers, which would take time.
Even after it opened, it would have to attract enough investment to stay afloat. In recent years, the Boston, Philadelphia, and Chicago stock markets have all been absorbed by the New York stock markets.
Still, if the Texas Stock Exchange could gain traction, experts say it would speed up the economic boom that has already been underway in DFW.
“It’s going to take a while to launch if it actually gets launched,” said Dendy. “But Texas is special, so it might actually happen here.”
Experts told NBC 5 that if you’re already invested in the markets in New York, the eventual arrival of a new stock exchange shouldn’t significantly impact your existing investments. It could just offer another competitive option for people to trade.
