There’s a brand new stock exchange getting ready to be launched in the United States of America.
What’s happening:
- BlackRock and Citadel have announced they are backing the launch of a new national stock exchange in Texas
- The new exchange will be known as the Texas Stock Exchange and is being led by a group of entrepreneurs based in Dallas
Why it matters:
- The New York Stock Exchange is the world’s most valuable stock exchange based on market capitalization and there are very few new stock exchanges ever launched in the United States, largely due to the exponential costs and regulatory hurdles associated with forming a national stock exchange
By the numbers:
- The Texas Stock Exchange has raised $120M USD in venture capital funding
- The Texas Stock Exchange plans to launch their first official listings for exchange traded funds and companies within 24 months
Going deeper:
- One of the biggest hurdles that many companies face when listing on the Nasdaq or New York Stock Exchange is the onerous costs related to compliance, which the Texas Stock Exchange is aiming to disrupt
The fine print:
- The Texas Stock Exchange will need to formally receive approval from the Securities and Exchange Commission before it can officially launch
