Did Texas just ring the bell on a bit of healthy competition for Wall Street? As the ‘Friendship State’ wins over out-of-state entrepreneurs, the newly announced Texas Stock Exchange (TXSE) aims to attract investors with its business-friendly approach. Mega investors like BlackRock BLK and Citadel LLC have already raised over $120 million to facilitate the formation of the groundbreaking exchange.
Companies Flock to the Lone Star State
In addition to a host of smaller and medium-sized businesses, publicly traded companies are migrating their operations to Texas like never before. Charles Schwab SCHW initiated its relocation process from California to Texas in 2019. Oracle ORCL relocated its headquarters from California to Texas in 2020 and Tesla TSLA followed suit in 2021. While these publicly traded companies all remain listed in NYC for the time being, only time will tell which ones could decide to re-list on the TXSE when the exchange goes live.
Elon Musk leads the Way
Like pieces of his armor, the Iron Man magnetically draws his futuristic enterprises to himself in Texas. Wall Street is left wondering if Musk will relocate Tesla’s TSLA current Nasdaq listing to the TXSE upon its launch. After taking over the social media company formerly known as Twitter (TWTR) on the NYSE, Musk privatized, renamed, and rebranded it as ‘X.’ We wouldn’t be shocked if this de-listed company found a new home on the TXSE.
Texas is open for business
In a recent CNBC ‘Squawk Box’ interview on the subject of the TXSE, Texas Governor Greg Abbott reminded potential investors of Texas’ number one ranking for having the most companies listed on the New York Stock Exchange. (CNBC) While NYSE and Nasdaq listed companies increasingly bemoan exorbitant exchange related fees and overbearing regulations, the TXSE has made a commitment to charge significantly lower fees and minimize regulatory red tape. (InvestorPlace) Trading is set to begin late next year with exchange listings starting in 2026 (Texas Tribune) Let us know what you think about the upcoming exchange launch in the comment section below.
