Nasdaq backs New Texas Stock Exchange, Intensifying Competition
DALLAS – A new stock exchange, TXSE (Texas Stock Exchange), is gaining momentum with a important investment from J.P. Morgan and support for a proposed constitutional amendment that would ban securities taxes in โฃthe state. The developments signal a serious challenge to established exchanges like the Nasdaq and New York Stock Exchange, as TXSE aims to become a majorโค player inโฃ the financial landscape.
TXSE, which announced a second round of financing โขincluding the J.P. Morgan investment, is positioning itself as an option for companies seeking to โคlist their stocks. Proposition 6, a state constitutional amendment on the November ballot, would eliminate โtaxes on the sale of stocksโค and other securities, a moveโค TXSE and Nasdaqโข both support. โOpponents argue the ban would disproportionately benefit the wealthy.The exchange is planned for a location dubbed “Y’all โStreet” in Dallas, aiming to capitalize on Texas’ growing economy and business-pleasant environment. โ
The proposed banโข on securitiesโ taxes has drawn support from both TXSE and Nasdaq,who argueโ it will attract more companies to list in Texas. Opponents of Proposition 6 contend the measure would exacerbate economic inequality by eliminating a revenue source used to fund essential state services. The amendment is up for a vote in November.
J.P. Morgan’s parent company contributed $250 million to TXSE’s second-round funding,demonstrating confidence in โthe exchange’s potential. the new exchange is hoping to attract companies that feel underserved by existing options and benefit from a lower-tax environment.