BlackRock and Citadel Securities launch new electronic exchange in Dallas, targeting NYSE and Nasdaq’s market share

  • BlackRock and Citadel Securities plan to launch the Texas Stock Exchange (TXSE) in Dallas
  • NYSE, Nasdaq, IEX, Members Exchange, and MIAX Pearl Equities have also emerged as competitors
  • 6.5% of daily average U.S. equity dollar volume traded on alternative exchanges in 2023
  • 42% of daily average dollar volume traded off-exchange last year
  • Listing decisions involve both technical and soft factors, such as reputation and branding
  • Cboe has only three U.S. company listings despite offering exchange-traded fund listings
  • TXSE hasn’t applied to register with the SEC yet

The New York Stock Exchange (NYSE) and Nasdaq have long dominated the U.S. stock trading scene, but a new player is entering the game: the Texas Stock Exchange (TXSE), backed by BlackRock and Citadel Securities. This electronic exchange aims to challenge the traditional giants in the market. While alternative exchanges like BATS, Direct Edge, IEX, Members Exchange, and MIAX Pearl Equities have managed to capture trading volumes, they haven’t succeeded in attracting company initial public offerings (IPOs) or switching listing venues. The TXSE could potentially appeal to companies with unique board composition requirements or geographical preferences. Despite the competition, NYSE and Nasdaq aren’t likely to lose their clients easily.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the planned launch of a new share-trading venue in Dallas called the Texas Stock Exchange by a group backed by BlackRock and Citadel Securities. It discusses the history of other upstart exchanges that have emerged in recent years and their trading volumes, as well as the factors involved in deciding where to list shares and the importance of listing venues for companies. The article also mentions the revenues generated from listing services at NYSE’s parent ICE and Nasdaq. While it does not mention any specific numbers or data points, it presents a balanced view of the situation without any personal perspective or bias.
Noise Level: 6
Noise Justification: The article provides some relevant information about the potential emergence of a new stock exchange in Dallas and discusses the factors that influence companies’ decisions on where to list their shares. However, it contains some irrelevant details and repetitive information, as well as speculative statements without strong evidence or data to support them.
Public Companies: BlackRock (BLK), Citadel Securities (Not available), Cboe Global Markets (CBOE), Intercontinental Exchange (ICE)
Key People: Telis Demos (Writer)

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Financial Relevance: Yes
Financial Markets Impacted: New York Stock Exchange and Nasdaq
Financial Rating Justification: The article discusses the potential impact of a new trading venue, the Texas Stock Exchange (TXSE), which could potentially attract companies to list their shares and compete with established exchanges like NYSE and Nasdaq. This could affect the market share and revenue for these traditional stock exchanges.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text.

Reported publicly: www.wsj.com