Texas Stock Exchange: A potential game-changer for investors, Dallas economy

Reactions are building across the country after investors announced plans to open a new national stock exchange based in Dallas.

The Texas Stock Exchange has $120 million in financing lined up and its leaders hope to compete with New York's major stock markets.

Amid optimism about the potential economic impact an exchange could bring to the DFW area, local experts told NBC 5 that the project still had hurdles to clear before it could compete with the hundreds of billions which are traded daily on the NASDAQ and the New York Stock Exchange.

On Tuesday, a proprietary company called TXSE announced it was moving forward with the Texas Stock Exchangehoping to rival New York markets by 2026.

"With Texas' booming economy, pro-business policies and growing population, the time is finally right," TXSE said in a statement announcing the move.

"There's a lot of energy and a lot of excitement in the area right now," said Ray Perryman, president of The Perryman Group.

Perryman, a renowned economist, said the Lone Star State is a desirable place to build a new stock market.

Data showed that in 2023, Texas became home to more people working in finance than New York state, and the state led the nation in job creation and the number of Fortune 500 companies headquartered within its borders. .

And recent economic growth has attracted companies like Hewlett-Packard and Tesla to move their headquarters here.

“Texas is very attractive; it attracts a lot of corporate interests and there is already a large wealth base in the Dallas area,” Perryman said. "So there are a lot of things that say this could very well work."

NBC 5 wanted to know if this new market would affect the money of people who live in Dallas-Fort Worth and have already invested in the New York stock markets.

"It sounds exciting, but for the average investor, this won't have any immediate impact," said Bill Dendy, president of Alicorn Investment Management.

Dendy said several steps needed to be approved before this proposed exchange could come online. The Texas Stock Exchange would have to be chartered by the U.S. Securities and Exchange Commission and ensure insurance protections for money invested by consumers, which would take time.

Even after opening, it would have to attract enough investment to stay afloat. In recent years, the Boston, Philadelphia and Chicago stock markets have been absorbed by the New York stock markets.

Still, if the Texas Stock Exchange could gain traction, experts say it would accelerate the economic boom that has already been underway in DFW.

"The launch will take some time if it is actually launched," Dendy said. "But Texas is special, so it could actually happen here."

Experts told NBC 5 that if you have already invested in the New York markets, the eventual arrival of a new stock exchange should not significantly affect your existing investments. It could simply offer another competitive option for people to trade.

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