Millions of dollars have been invested by influential backers in a new stock exchange based in Texas, which hopes to draw businesses with more business-friendly regulations than the New York Stock Exchange and the Nasdaq.
The Texas Stock Exchange, which is supported by asset manager BlackRock and market maker Citadel Securities, plans to file filing materials with the Securities and Exchange Commission later this year, the exchange’s parent firm, TXSE Group, announced in a statement on Wednesday.
A number of CEOs who are against what they call “woke capitalism” have recently relocated their businesses to Texas, the state with the highest concentration of Fortune 500 headquarters.
Some analysts said that the new stock exchange might be an attempt to draw in conservative businesses, while others played down the possible influence of politics. TXSE Group declared in a statement that the exchange is apolitical.
TXSE Group confirmed receiving a comment, but they chose not to reply.
What the Texas Stock Exchange has to say about the corporate culture conflicts is explained here.
With its main office located in Dallas, the Texas Stock Exchange is set to become a completely digital national market where businesses can list and transact on its platform.
market-traded products, a developing class of investment instruments that let users wager on a variety of assets, will also be listed on the new market. For example, customers can invest in bitcoin without owning the underlying cryptocurrency by using an exchange-traded bitcoin fund.
The TXSE Group said in a statement that more than two dozen investors have supported the exchange with a total of more than $120 billion in funding.
The TXSE group said that the exchange hopes to draw companies that are irritated by the strict listing requirements and the rising expenses they impose. For example, the group stated that the Nasdaq has implemented new regulations that set goals for board diversity.
James Lee, founder and CEO of TXSE Group, stated in a statement that “this is an opportune time to build a major, national stock exchange in Texas, combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities.”
The statement comes amid a conservative pushback against diversity, fairness, and inclusion policies and climate-friendly company practices, which some opponents have mocked as “woke capitalism.”
Regarding the degree to which conservative-leaning companies can list on or trade on the Texas Stock Exchange, analysts disagreed.
Some highlighted the importance of politics for an exchange that offers cheaper compliance costs, like the Texas Stock Exchange, while others dismissed the impact of ‘anti-woke’ branding as a major selling point for the new market.
Larry Tabb, head of market structure research at Bloomberg Intelligence, said that Texas “has a pretty clear message: ‘If you’re anti-woke, come here.”
According to Tabb, since technology has made stock exchanges more accessible online and reduced the initial investment required to provide top-notch services, the exchanges have looked for different ways to draw in clients. He pointed out that these days, listing rules, branding, and liquidity are the main characteristics that set exchanges apart, with a focus on branding.
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