TXSE Group, backed by BlackRock (BLK.N), opens new tab and Citadel Securities, plans to launch the Texas Stock Exchange in Dallas, going up against established New York-centric exchanges in a bid to attract global companies.
The exchange, which has raised about $120 million, plans to file registration documents with the U.S. Securities and Exchange Commission to start operating as a national securities exchange later this year, TXSE said on Wednesday.
A rebound in capital markets has sent a plethora of companies from within and outside the United States scrambling to list their stocks, creating more opportunity for indexes.
But carving a space could be difficult for a new exchange in the lucrative U.S. listings market, where the New York Stock Exchange and the Nasdaq have dominated in a virtual duopoly since the 2000s.
"Competition is always good and this is not competition to be taken lightly," said JJ Kinahan, CEO of IG North America and president of online broker Tastytrade. "That said, a lot of other players have tried it and it's hard to open an exchange at the end of the day."
Major regional stock exchanges including the Philadelphia Stock Exchange, the Boston Stock Exchange, and the Chicago Stock Exchange merged into either the Nasdaq or the NYSE after the U.S. Securities and Exchange Commission introduced laws that gave preference to automated trading platforms.