There’s an intriguing piece of news crossing the tape today investors may want to be aware of: A new exchange may be coming to a market near you. Today, reports are that BlackRock (NYSE:BLK) and Citadel Securities are behind the launch of the new Dallas-based Texas Stock Exchange.
A recent report from Bloomberg highlighted some details about what this launch will mean, and what investors can expect. At first glance, the goal behind this exchange appears to be to provide investors with another option outside of the New York Stock Exchange and Nasdaq.
With so much business activity moving to the Lone Star State, let’s dive into what this announcement means for interested investors.
7 Things to Know About the New Texas Stock Exchange
- The Texas Stock Exchange has already raised $120 million, in part due to the high-profile nature of its backers.
- Plans have been laid out to file registration documents with the U.S. Securities and Exchange Commission (SEC) in short order to bring the exchange live.
- Expectations are that the new exchange will provide companies with “relief from rising compliance costs at the NYSE and Nasdaq,” per Bloomberg.
- Exact figures for listing fees and how the new exchange will be run are expected to come in future filing documents.
- Among the goals listed by the project’s backers are improved liquidity in the markets and increased market efficiency.
- According to The Wall Street Journal, the state of Texas is “tied for second with New York in terms of the number of Fortune 500 companies.”
- If successful, the exchange will operate as the TXSE — not to be confused with TSX, the Toronto Stock Exchange in Canada.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
