Texas Stock Exchange Begins Trading as Dallas Challenges Wall Street

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The Texas Stock Exchange (TXSE) officially reached a historic milestone on Monday, as it began trading operations from its headquarters in Dallas.

While today’s launch does not immediately create a full competitor to the New York Stock Exchange (NYSE) or Nasdaq, it marks the beginning of a phased rollout that supporters believe could fundamentally reshape the American financial landscape over the coming years.

The exchange represents one of the most ambitious financial infrastructure projects launched in the United States in decades. Backed by billions of dollars in capital and supported by prominent financial firms, the TXSE aims to capitalize on Texas’s growing role as America’s economic engine.

Texas Policy Research (TPR) has followed the development of the TXSE since it was first announced in 2024. At the time, exchange leaders outlined an ambitious vision to establish a national stock exchange headquartered in Dallas that would compete with the NYSE and Nasdaq. While that vision generated considerable attention, many of its long term goals depended upon changes to Texas law.

During the 89th Texas Legislature (2025), lawmakers enacted the legal framework that supporters argued was necessary to make that vision a reality. One year later, those reforms have now moved from policy into practice as the TXSE officially begins trading.

Texas Stock Exchange Trading Begins with a Phased Rollout

Today’s launch represents the first operational phase of the TXSE.

Initially, the exchange is facilitating trading in exchange-traded products and other publicly traded securities that are already listed elsewhere. Officials have indicated that thousands of publicly traded securities will become available through the platform as the rollout continues.

The next major milestone is expected later this year, when the exchange plans to begin listing corporate securities directly. That expansion will move the TXSE beyond simply providing another venue for trading and into direct competition with America’s established stock exchanges.

According to exchange leadership, corporate listings are expected to begin during the fourth quarter of 2026.

The 2025 Legislature Built the Foundation

When TPR first examined the TXSE in September 2024, many of its stated objectives still depended upon legislative action. Exchange leaders argued that Texas needed a stronger corporate legal framework, competitive tax treatment, and long-term policy certainty before a national securities exchange could successfully establish itself in the state.

The 89th Texas Legislature ultimately delivered much of that framework through a coordinated legislative package consisting of Senate Bill 29 (SB 29), authored by State Sen. Bryan Hughes (R-Mineola), Senate Bill 1058 (SB 1058), authored by State Sen. Tan Parker (R-Flower Mound), and House Joint Resolution 4 (HJR 4), authored by State Rep. Morgan Meyer (R-Dallas), which Texas voters later approved as Proposition 6.

Rather than relying solely on private investment, lawmakers enacted complementary reforms that addressed corporate governance, franchise tax policy, and constitutional protections against future taxation of securities exchanges. Together, these measures were designed to make Texas one of the nation’s most attractive jurisdictions for financial markets and publicly traded companies.

Senate Bill 29 Modernized Texas Corporate Law

Senate Bill 29 represented the centerpiece of the legislative package.

The legislation amended the Texas Business Organizations Code to formally recognize a Texas-based national securities exchange, establish legal standards for exchanges headquartered in the state, strengthen corporate governance protections, authorize Texas courts as exclusive venues for certain internal corporate disputes, and provide greater legal certainty for corporations choosing Texas as their state of incorporation.

The bill also expanded protections for directors and officers acting in good faith, clarified procedures surrounding shareholder derivative litigation, and updated governance provisions for corporations, limited liability companies, and limited partnerships operating on or listed through national securities exchanges.

For decades, Delaware has been the preferred state of incorporation for many publicly traded companies because of its specialized corporate law. Supporters of Senate Bill 29, including TPR, argued that modernizing Texas law would allow the state to compete more effectively by offering corporations another jurisdiction with predictable governance rules and a business-friendly legal environment.

Senate Bill 1058 Updated the Texas Franchise Tax

Senate Bill 1058 addressed a narrower but equally important tax issue affecting securities exchanges.

The legislation excludes certain transaction rebate payments made by registered securities market operators from the calculation of total revenue for purposes of the Texas franchise tax. Those rebate payments are commonly used by exchanges to encourage market liquidity by incentivizing brokers and dealers to facilitate trades.

Supporters, including TPR, argued that taxing these routine market incentives could discourage exchanges from locating in Texas. By adjusting the franchise tax code, lawmakers sought to align Texas’s tax treatment with modern securities market practices while removing unnecessary barriers to establishing a national exchange.

The legislation took effect on January 1, 2026, providing the tax framework several months before trading operations officially began.

Proposition 6 Added Constitutional Protection

The final piece of the legislative package required approval from Texas voters.

House Joint Resolution 4 proposed a constitutional amendment prohibiting the Legislature from imposing an occupation tax on registered securities market operators or a tax on securities transactions while preserving the state’s authority to levy generally applicable business taxes and other existing taxes.

Texas voters approved the proposal during the November 4, 2025 constitutional amendment election by a vote of 54.87 percent in favor to 45.13 percent in opposition, permanently adding these protections to the Texas Constitution.

Supporters, including TPR, argued that placing these protections in the Constitution provides long-term certainty by preventing future Legislatures from singling out securities exchanges or securities transactions for new taxes without first obtaining voter approval through another constitutional amendment.

Why the Texas Stock Exchange Was Created

The TXSE was founded on the belief that America’s public markets would benefit from greater competition.

For decades, the NYSE and Nasdaq have dominated U.S. equity markets. Supporters of the TXSE, including TPR, argue that introducing another national exchange provides businesses with additional options while encouraging innovation and competition throughout financial markets.

Texas has become an increasingly attractive location for major corporations over the past decade. Hundreds of companies have relocated headquarters or expanded operations into the state, drawn by a business-friendly regulatory environment, lower taxes, a growing workforce, and sustained population growth. Exchange leaders contend that Texas now possesses the economic scale necessary to support its own national securities exchange.

Dallas was selected as the headquarters because of its central location, extensive financial services industry, growing corporate presence, and proximity to many Fortune 500 companies operating throughout Texas.

Texas Continues Growing as a National Financial Hub

The launch of the TXSE reflects a broader trend that has been unfolding for years.

Texas has increasingly emerged as one of the nation’s leading financial centers. Banking, private equity, investment management, insurance, financial technology, and asset management firms have expanded rapidly across Dallas, Austin, Houston, and other metropolitan areas.

The establishment of a national stock exchange further strengthens that reputation. Supporters contend that having a stock exchange headquartered in Texas could encourage additional financial firms to establish operations in the state while providing publicly traded companies another venue for raising capital and engaging investors.

The Legislature’s 2025 reforms demonstrate that state leaders are not simply waiting for market forces to shape Texas’ financial future. Instead, lawmakers proactively revised corporate governance laws, tax policy, and even the Texas Constitution in an effort to make the state more competitive for financial institutions.

Although New York remains America’s largest financial center, the TXSE represents another sign that financial activity is becoming more geographically diversified.

What Happens Next for the Texas Stock Exchange

Monday’s launch is only the beginning.

Exchange officials plan to continue expanding available securities throughout the summer before introducing corporate listings later this year.

Successfully attracting companies to list on the exchange will likely be the next major test.

Many established companies have longstanding relationships with the NYSE or Nasdaq. Convincing businesses to pursue new listings or transfer existing listings will require demonstrating meaningful advantages, including competitive listing standards, reliable technology, regulatory certainty, and strong investor participation.

Market liquidity will also be closely watched. Any stock exchange depends upon attracting sufficient trading volume to provide efficient price discovery and efficient trade execution for investors.

If the TXSE succeeds in attracting both listed companies and active trading, it could establish itself as a permanent fixture within American capital markets.

Potential Economic Impact for Texas

The TXSE has the potential to generate economic benefits extending well beyond securities trading.

Major financial exchanges typically support high-paying jobs across technology, legal services, compliance, accounting, financial analysis, cybersecurity, and corporate services. The exchange could also strengthen Dallas’s reputation as a destination for financial innovation and corporate headquarters.

As additional companies consider relocating or expanding into Texas, the presence of a national stock exchange headquartered within the state may become another competitive advantage that reinforces Texas’ business climate.

While the full economic effects will take years to measure, today’s launch represents another milestone in Texas’ continuing economic growth.

A Historic Milestone for Texas Financial Markets

The first day of trading marks an important moment for both Texas and American financial markets.

It also represents the successful implementation of a policy strategy that Texas Policy Research has followed since the exchange was first announced in 2024. What began as an ambitious proposal has now become an operating financial institution supported by statutory reforms enacted during the 89th Texas Legislature and constitutional protections approved by Texas voters.

Whether the Texas Stock Exchange ultimately becomes a major competitor to the New York Stock Exchange and Nasdaq remains to be seen. Building liquidity, attracting corporate listings, and earning the confidence of investors will take time.

What is already clear, however, is that Texas has moved beyond simply attracting businesses from other states. By creating the legal infrastructure necessary to support a national securities exchange headquartered in Texas, state leaders have taken another significant step toward establishing Texas not only as America’s economic powerhouse, but also as one of its leading financial centers.

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