Texas Set to Launch Its First National Stock Exchange

June 11, 2024 | Insights

By Denise Rose, Kate Goodrich, & LaRessa Quintana 

In a groundbreaking move that highlights Texas’ growing influence in the financial sector, Texas is on the verge of establishing its first national stock exchange. Led by James Lee, an experienced entrepreneur and financier, the Texas Stock Exchange (TXSE) successfully raised approximately $120 million from individual investors and large firms. With plans to file registration documents with the Securities and Exchange Commission (SEC) later this year, the TXSE aims to start trading by late 2025 and list its first companies by early 2026.

The formation of the TXSE comes at a time when many companies are expressing dissatisfaction with the escalating compliance costs associated with the NASDAQ and the New York Stock Exchange (NYSE). Leveraging Texas’s favorable regulatory and tax environment, the TXSE hopes to attract companies that are looking for a competitive alternative.

Texas stands as an ideal location for the newest stock exchange. The state is currently tied with New York for the second-highest number of Fortune 500 companies, with 52 headquartered, behind only California. Once fully operational, the exchange will employ 100 employees in the Dallas area, adding further economic growth and job creation.

TXSE will primarily serve as a new listing venue for public companies, exchange-traded products, and American depositary receipts (ADR) in the Southeast U.S., focusing on Texas, Oklahoma, and the southeastern quadrant of the United States, including Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Tennessee, and the Carolinas. By concentrating on this region, the TXSE hopes to become the third-largest listing venue in the U.S.

The state’s business-friendly environment has consistently attracted companies to relocate their headquarters and capital investments to Texas. Additionally, as the eighth-largest economy globally, Texas continues to lead the nation in exporting goods and attracting foreign direct investment.

The Texas Stock Exchange represents a bold step forward in the progression of Texas as a financial powerhouse. By offering a competitive alternative to existing exchanges and capitalizing on the state’s favorable business climate, the TXSE is well positioned to attract a diverse range of companies and investors, driving economic growth and innovation in the state for years to come.

The opinions expressed are those of the authors and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice. For questions about the formation of the TXSE and what it means for Texas, please contact Denise Rose, Kate Goodrich, and LaRessa Quintana or reach out to a member of the Government Relations & Public Policy practice.

Meet Denise

For nearly two decades, Denise has worked in and around the Texas Capitol, providing counsel to clients on Medicaid and hospital finance, special utility districts, occupational licensing, healthcare quality, and agency rulemaking processes and requests for proposals. She leads Jackson Walker’s Government Relations & Public Policy group. In recognition of her work at the Texas Capitol, Denise was honored with the first-ever Pink Granite Supporter of Women Award in 2021.

Meet Kate

Kate Goodrich is a governmental affairs consultant and a licensed attorney in the Austin office of Jackson Walker. She started her career as a federally registered lobbyist in Washington, D.C. and grew to become a senior advisor to legislators at the Texas Capitol. She has worked directly with U.S. Senate and House of Representatives staff, the Texas Senate Health and Human Services Committee, the Senate Finance Committee, and the Senate Natural Resources and Economic Development Committee. Her background in state and federal government gives her an in-depth and practical knowledge of the legislative and appropriations processes.

Meet LaRessa

LaRessa Quintana serves on the Government Relations & Public Policy team in Jackson Walker’s Austin office. LaRessa has experience serving businesses, nonprofits, and associations at the municipal and state level. She also gained hands-on experience at the Texas Capitol as a fellow of the 2019 Moreno/Rangel Legislative Leadership Program sponsored by the Mexican American Legislative Leadership Foundation. She also has a rich background in political campaign management. Drawing on her participation in the Blue Leadership Collaborative, a national accelerated program focused on training and building a pipeline of diverse campaign managers, LaRessa has led successful campaigns at the local level, including the Austin Housing for All affordable housing initiative and Councilwoman Vanessa Fuentes’s Austin City Council District 2 campaign.

In This Story

Kate Goodrich
Governmental Affairs Consultant, Austin

LaRessa Quintana
Governmental Affairs Consultant, Austin

Denise Rose
Partner, Austin