Texas Stock Exchange (TXSE) Group Inc. Company Profile

Background

TXSE Group Inc., headquartered in Dallas, Texas, is spearheading the establishment of the Texas Stock Exchange (TXSE), a fully electronic national securities exchange. The mission of TXSE is to provide U.S. and global companies with enhanced access to U.S. equity capital markets, offering a premier venue for listing and trading public companies and exchange-traded products (ETPs). By introducing a competitive alternative to existing exchanges, TXSE aims to revitalize competition for listings and enhance trading in the U.S. capital markets.

Key Strategic Focus

TXSE's strategic objectives include:

Comprehensive Market Services: Offering trading, listings of corporate issuers and ETPs, auctions, and a range of data products.

Technological Excellence: Developing an order matching engine that leverages the latest technology to deliver predictable performance, low latency, and speed comparable to that of the world's top-performing markets.

Market Expansion: Targeting the "southeast quadrant" of the United States, encompassing states from Texas to North Carolina, which are leading in economic expansion and population growth.

Financials and Funding

TXSE Group Inc. has successfully closed its initial capital raise at $161 million, making it the most well-capitalized exchange to ever file a Form 1 registration with the U.S. Securities and Exchange Commission (SEC). The funding round attracted a diverse group of investors, including major financial institutions and liquidity providers such as BlackRock, Citadel Securities, Charles Schwab, Dell Family Office Management, Fortress, Jump Trading, Squarepoint, Susquehanna Private Equity Investments, and Tower Research. The capital is intended to support the development and launch of the exchange, with trading expected to commence in early 2026 and listings by the end of the same year.

Technological Platform and Innovation

TXSE is committed to technological innovation, focusing on:

Advanced Trading Infrastructure: Building a state-of-the-art order matching engine designed for low latency and high-speed performance, ensuring efficient and reliable trading operations.

Fully Electronic Platform: Operating as a fully electronic exchange without a physical trading floor, while maintaining a physical presence in Dallas to showcase listings and provide issuer support.

Leadership Team

TXSE Group Inc. boasts a leadership team with extensive experience in market structure, regulation, and corporate governance:

James H. Lee: Founder, Chairman, and CEO. With 30 years of experience in U.S. equity markets and alternative investments, Lee has co-founded trading technology companies and served in leadership roles in public retirement systems.

Jeffrey Brown: General Counsel and Chief Regulatory Officer. Former Acting General Counsel at Charles Schwab, with over four decades of securities markets experience.

Cameron Smith: Global Head of Trading and Co-President. An industry veteran with more than 25 years of experience in trading, regulation, and compliance.

Rick Yoder: Chief Technology Officer. Over 20 years of experience in financial technology, previously serving as Director of Software Development at Intercontinental Exchange Data Services.

Nicole Chambers: Global Managing Director of Listings. Nearly 17 years of experience collaborating with public and private companies, formerly Senior Managing Director at Nasdaq.

Marc Cunningham: Global Managing Director. Over 25 years of experience in capital markets and corporate finance, previously Regional Head of Capital Markets at the New York Stock Exchange.

Jeff Karcher: Global Managing Director. More than three decades of experience in U.S. equity markets and international equity research, formerly leading the listings business at the New York Stock Exchange in the southeast.

The board of directors includes notable figures such as former Texas Governor Rick Perry, former SEC Commissioner Rick Roberts, and Alex Bussandri, Global Head of Strategy at Citadel Securities. Strategic advisors include Richard Fisher, former President of the Federal Reserve Bank of Dallas, and Brett Redfearn, former Director of the SEC's Division of Trading and Markets.

Competitor Profile

Market Insights and Dynamics

The U.S. stock exchange market is predominantly controlled by the New York Stock Exchange (NYSE) and Nasdaq, which together account for the majority of trading volume and company listings. The third-largest player, CBOE, holds approximately 12% market share. The introduction of TXSE aims to provide an alternative to this duopoly, offering companies and investors more choices and potentially lower compliance costs.

Competitor Analysis

New York Stock Exchange (NYSE): The largest stock exchange in the world by market capitalization, offering a broad range of listings and trading services.

Nasdaq: Known for its technology-focused listings and fully electronic trading platform, Nasdaq is a major competitor in the exchange market.

CBOE Global Markets: Offers trading in various asset classes, including equities, options, and futures, holding a smaller market share compared to NYSE and Nasdaq.

TXSE's entry into the market presents a challenge to these established exchanges, particularly by targeting companies seeking more flexible and cost-effective listing options.

Strategic Collaborations and Partnerships

TXSE has secured partnerships with major financial institutions and liquidity providers, including BlackRock, Citadel Securities, and Charles Schwab. These collaborations are intended to strengthen TXSE's market position and enhance its capabilities in providing competitive listing and trading services.

Operational Insights

TXSE's strategic considerations include:

Competitive Differentiation: Offering lower compliance costs and innovative listing standards to attract companies seeking alternatives to existing exchanges.

Market Positioning: Leveraging Texas's economic strength and business-friendly environment to establish a strong foothold in the exchange market.

Technological Innovation: Implementing advanced trading technologies to ensure efficient and reliable market operations.

Strategic Opportunities and Future Directions

TXSE's strategic roadmap includes:

Regulatory Approval: Securing SEC approval to operate as a national securities exchange, with trading expected to commence in early 2026 and listings by the end of the same year.