SEC Approves Texas Stock Exchange: A New Era for U.S. Public Markets

As of September 30, 2025, after more than 50 years in the making, the Texas Stock Exchange (TXSE) officially became registered as a national securities exchange. Impressively, the TXSE is the first fully integrated exchange to receive approval from the SEC in decades. Headquartered in Dallas, the TXSE represents a major milestone for Texas’s financial sector and could reshape how and where U.S. companies access public markets.

What is the Texas Stock Exchange (TXSE)?

The Texas Stock Exchange (“TXSE”) is a national securities exchange providing U.S. companies and global companies access to U.S. equity capital markets with the capability of providing a solution to list and trade public companies and exchange-traded products (“ETPs”). The TXSE aims to revitalize competition for issuers, establish the premier venue for listings, and create a world-class trading platform for all market participants. The TXSE is the only national securities exchange built and headquartered in Texas.

Why Was the TXSE Established?

The TXSE was established to offer a business-friendly, lower cost alternative for listing and trading securities compared to the New York Stock Exchange (NYSE) and Nasdaq. As a result of a decreased number of publicly traded companies, the TXSE aims to reverse the trend by having a fully integrated offering and providing greater alignment with issuers and investors as well as addressing the high cost of going and staying public. As stated by TXSE founder and CEO James H. Lee, “the State of Texas has a long-term vision for driving economic growth, streamlining regulations, and building financial infrastructure as liquidity clusters shift to North Texas. As the one and only national securities exchange built and headquartered in Texas, we [the TXSE] are proud to have been the catalyst for development of capital markets in our great state.” With Texas’ economy, pro-business policies, and population growth, it was determined that this was the right time to establish a national securities exchange in Dallas.

Critical Components of the TXSE

The TXSE places an emphasis on governance independence through lighter structural restrictions and freer board decision-making. The TXSE’s model differs from traditional exchanges in several key ways:

Operates entirely through a proprietary electronic trading platform (no physical trading floor)
Enforces stricter listing standards than even the NYSE
Simplifies order types to promote transparency
Initially targets issuers already listed on the NYSE or Nasdaq
Plans to expand into ETPs, ETFs, ETNs, and commodities

What to Know Moving Forward

Looking ahead, the TXSE has stated that trading is expected to begin in 2026. Positioning itself as a major competitor to the NYSE and Nasdaq, companies currently listed on those exchanges will be listed on TXSE first with new IPOs expected to begin in late 2026. For issuers, the TXSE could offer a cost-effective alternative with fewer structural constraints. For investors, increased exchange competition may mean tighter spreads and greater liquidity.

PSBP Law is closely monitoring developments related to the TXSE’s launch and its potential implications for public company listings, fund strategies, and capital formation. Stay tuned for future updates.