Texas will have its own stock exchange. That is the intention of the Texas Stock Exchange (TXSE), backed by several investment funds, including BlackRock and Citadel Securities. The firm, led by James Lee, told the Wall Street Journal that it intends to confront the restrictive regulations imposed by the NASDAQ and the New York Stock Exchange (NYSE).

According to the information published this Tuesday, the Texas Stock Exchange has already raised nearly $120 million and will present the necessary documentation to the Securities Market Commission throughout 2024.

The entry and operating limits on this new and first Texas exchange are expected to be much more flexible than the other large North American exchanges. Companies listed on the NASDAQ and the NYSE must comply with a series of regulatory requirements, such as audits, reports and transparencies, which come at a high cost.

Added to this are the new measures implemented on the NASDAQ regarding inclusivity and diversity. The new policies set diversity goals on boards of directors, requiring companies to have at least one director who identifies as a woman and another who identifies as an underrepresented minority or LGBTQ+. This can be seen as an additional compliance burden for companies that may need to change up their board to comply with these standards. James Lee's team hopes that the discontent that comes from these regulations will attract people to the Texas stock exchange.

"Dallas has become one of, if not the most, dominant financial centers in the country, if not the world," Lee told the WSJ. The businessman claims that the new Texas stock exchange will be "apolitical" and free from the woke policies in New York.

According to the WSJ, TXSE will operate entirely electronically but plans to have a physical presence in downtown Dallas. The exchange plans to compete for primary and dual listings. The TXSE also hopes to attract listings of exchange-traded products.