The upstart Texas Stock Exchange has passed a regulatory milestone in its quest to open for trading.
The U.S. Securities and Exchange Commission on Friday published the registration for the Dallas-based company, along with its rules and bylaws. The exchange filed its registration and application in January, but the newly released set of documents outlined to financial regulators how the new exchange will operate.
Led by CEO James Lee, the newest entrant into the world of stock trading also gave some hints in a statement about to how it plans to compete with giants such as the New York Stock Exchange and Nasdaq. Each of those storied institutions have responded by growing their footprints in Dallas.
The company said it is creating a “proprietary matching engine from the ground up,” and that it has “assembled an experienced and talented team of technologists, operations and regulatory personnel.”
It plans to build an exchange “that incorporates the latest hardware and software delivering best-in-class speed and performance,” the statement read.
“At the same time, we are ensuring our exchange platform and services will be flexible and scalable, allowing TXSE to meet our customers’ needs in the rapidly evolving regulatory and trading environment,” it continued.
The platform’s leaders have said they are planning a presence in downtown Dallas, but have not publicly identified where. For now, the team is running the founding of the exchange from Weir Plaza, on the edge of Highland Park near the Knox-Henderson neighborhood.
The regulatory filings include rules for the stock exchanges, applications for listing and other guidelines.
“Our approach aims to restore confidence in the markets while reducing the high cost of going and staying public,” TXSE’s statement said.
The exchange has indicated that it hopes to start business near the end of 2025, and make its first trades in early 2026.
However, it has not indicated which, if any, companies have committed to listing on the exchange.
Wall Street has already taken notice. The exchange raised an initial $161 million, and is backed by giants such as Citadel Securities and BlackRock.
Despite TXSE being the hometown team, the NYSE beat the Dallas upstart to the punch by officially opening for business earlier this week and taking its first listing.
