The Texas Stock Exchange is ramping up its efforts to draw major US companies away from established exchanges like the New York Stock Exchange and Nasdaq. JPMorgan Chase & Co. Dallas region chair Elaine Agather, a TXSE advisory board member, indicated that further announcements regarding the upstart marketplace are expected soon. She expressed enthusiasm following a Wall Street Journal report that Energy Transfer LP, a pipeline giant, intends to become the first primary listing on the TXSE.
Energy Transfer's move from the NYSE to the Texas Stock Exchange represents a significant victory for the nascent exchange, which aims to disrupt the traditional listing business. The company is valued at $75 billion, and its executive chairman, Kelcy Warren, is a key backer of TXSE's parent company, holding approximately a 30% stake in TXSE Group. He was also among its earliest investors, alongside BlackRock and Citadel Securities.
The TXSE, which launched in July, has already added several businesses to its listings. However, securing Energy Transfer as its first primary listing would enable the TXSE to participate in opening and closing auction trades, which are typically the most active and profitable for exchanges. Companies also pay annual listing fees, potentially reaching hundreds of thousands of dollars. The exchange is also reportedly set to add multiple exchange-traded funds in the coming weeks and plans for its first initial public offerings in 2027.
Elaine Agather of JPMorgan Chase highlighted the benefits of competition, noting Texas's appeal to major companies and financial firms due to its low taxes and favorable regulatory environment. While acknowledging New York's enduring role as a financial hub, she suggested that the TXSE offers companies more listing options. Analysts like Nic Puckrin, a former Goldman Sachs analyst, view the TXSE as a challenger to the duopoly of NYSE and Nasdaq, offering a potentially cheaper and more business-friendly alternative, particularly for regional banks, energy companies, and mid-sized businesses with ties to Texas. The TXSE is expected to adopt a lighter approach to environmental, social, and governance (ESG) reporting, which may be a consideration for some investors.
