The Texas Stock Exchange (TXSE) has secured a significant win with Dallas-based Energy Transfer, a company valued at $75 billion, planning to move its primary listing from the New York Stock Exchange (NYSE) as early as next month. This move marks a major milestone for the fledgling exchange, positioning it to capture lucrative opening and closing auction trades.
Kelcy Warren, executive chairman of Energy Transfer and an early investor in TXSE Group, has a substantial stake in the anti-woke exchange. TXSE launched in July and has since added several businesses to its listings, but Energy Transfer's primary listing would be its first, according to The Wall Street Journal.
The addition of Energy Transfer is seen as a boost to Texas's ambitions to become a prominent financial capital. Elaine Agather, Dallas-regional chair at JPMorgan Chase & Co and a member of the TXSE advisory board, noted that the state's low taxes and favorable regulatory climate are increasingly attractive to major companies and financial firms. Major banks like Goldman Sachs Group Inc and Wells Fargo & Co have already expanded their presence in Texas.
Proponents argue that TXSE offers a much-needed alternative to the established duopoly of the NYSE and NASDAQ. Former Goldman Sachs analyst Nic Puckrin stated that companies have expressed dissatisfaction with the high listing fees, stringent entry requirements, and reporting obligations of existing exchanges. TXSE aims to provide a more cost-effective and business-friendly environment. The exchange plans to list exchange-traded funds in the third quarter, corporate listings in the fourth quarter, and its first initial public offerings in 2027.
TXSE is expected to appeal to regional banks, energy companies with Texas ties, and mid-sized businesses seeking an alternative to Wall Street. Companies relocating to Texas to leverage its lower taxes, such as Tesla and Charles Schwab, are also potential candidates for listing. Puckrin suggested that a third major U.S. stock exchange could benefit investors by encouraging more companies to list and creating additional investment options.
However, Puckrin also pointed out that TXSE is anticipated to adopt a less stringent approach to environmental, social, and governance (ESG) reporting compared to established exchanges, a factor that sustainability-focused investors may consider.
