BlackRock and Citadel Securities back new Texas-based challenger exchange

Over a dozen investors including BlackRock and Citadel Securities have raised $120 million for the new exchange set to rival the likes of NYSE and Nasdaq.

BlackRock and Citadel Securities have moved to support a new Texas-based contender exchange headquartered in Dallas.

Designed to rival the likes of incumbent exchanges Nasdaq and NYSE in the US, Texas Stock Exchange (TXSE) has raised $120 million from around a dozen investors including BlackRock and Citadel Securities in a funding round closed in May.

The new exchange is now setting out plans to file for registration with the US Securities and Exchanges Commission (SEC). First reported by Wall Street Journal, TXSE is aiming for a launch at the start of 2025 and host its first listing in 2026.

The TRADE understands that BlackRock has taken a minority investment.  The move comes as part of a series of support from BlackRock or new venues in a bid to support the development of the liquidity landscape including Luminex, RFQ Hub and Members Exchange (MEMX).

“BlackRock is proud to be a founding investor in the Texas Stock Exchange to increase liquidity and improve market efficiency for BlackRock’s clients and other investors in the US capital markets,” said a BlackRock spokesperson.

“TXSE is well positioned to capitalise on the Texas economy and strength of the state’s business environment. We look forward to engaging with the other investors on the benefits of the TXSE’s unique value proposition.”

Citadel Securities had not responded to a request for comment at the time of publishing.

Texas has been noted by market participants as an increasingly significant market in North America and globally, playing host to around 5000 private equity-backed firms and 1500 publicly listed firms.

In an update on social media on Tuesday, chair and chief executive at TXSE James Lee, said: “We are thankful for the support of our more than two dozen investors, including some of the largest financial institutions and liquidity providers in the world, such as BlackRock and Citadel Securities, as well as prominent business leaders from around the country.”

“With approximately $120 million of capital raised, TXSE is expected to be the most well-capitalised exchange entrant to file a registration with the US Securities and Exchange Commission.”