Investors in Texas are looking to start an “anti-woke” stock exchange to offer an alternative to the regular New York Stock Exchange and Nasdaq.
However, these investors have claimed that this Texas Stock Exchange will be “apolitical” — and won’t have the necessary board diversity targets like Nasdaq does.
Texas Stock Exchange
Investors have ramped up fundraising to create a Texas Stock Exchange in the next few years in an attempt to make Texas, rather than New York, the hub of investing and finances.
This new exchange is currently set to have a physical location in Dallas, though much of its trading will be done electronically.
The New Financial Center of the U.S.
While some may think trying to push Texas as the U.S.’s new financial center is absurd, Texas has quickly grown to become a leading state that is home to many corporations and companies.
In just the last few years, many companies, such as Tesla, have decided to move to Texas. Now, the state has the second-largest amount of Fortune 500 companies. California remains the top state with the most of these corporations.
Why Fortune 500 Companies Have Moved to Texas
There are a variety of reasons why more and more Fortune 500 companies have chosen to move to Texas recently.
However, for the most part, these businesses have chosen to set up their headquarters in Texas because the state offers more favorable regulatory policies and tax rates.
Challenging the NYSE and Nasdaq
Now, the powers that be in Texas are looking to bring more investors and businesses to Texas by creating their own Texas Stock Exchange.
This new stock exchange would challenge the NYSE and Nasdaq, the two mainstays of the financial world. While becoming a rival to these two entities would be an uphill battle in itself, some big-name investors have already put their support behind a Texas Stock Exchange.
BlackRock Shows Support
According to recent reporting, BlackRock has already shown the Texas Stock Exchange support. However, they’re not alone.
Citadel Securities is also apparently ready to push for a Texas Stock Exchange. With the backing of these two huge investment companies, this new stock exchange could actually find success, according to some analysts.
An Anti-Woke Exchange
This upcoming Texas Stock Exchange has already made a name for itself, as it is being touted as an anti-woke market.
The exchange’s CEO, James Lee, has simply stated that this market will be apolitical. However, it appears certain aspects of the more known entities — such as Nasdaq’s required board diversity targets — won’t be seen in this new exchange.
Companies Could Flock to This New Exchange
Various CEOs and company heads have decried what they call to be “woke” policies in business. So, it wouldn’t be too out of the ordinary to see some of these critics jump at the chance to be a part of this new market.
For example, Citadel’s Ken Griffin has long been a public critic of what he calls the country’s “woke ideology.” Citadel is one of the most recent backers of this new exchange.
BlackRock’s Stance
However, BlackRock has a more interesting stance on the woke fight. Larry Fink, the CEO of BlackRock, has recently become a target of conservatives who feel that he’s pushing for more diversity in the boardrooms.
These conservative detractors have also gone after Fink for making moves to help climate change problems. Regardless of this criticism, BlackRock has supported this new market in Texas.
Fundraising for the TXSE
Fundraising remains the main goal for the Texas Stock Exchange at the moment. However, they’ve done relatively well.
So far, the new exchange has raised about $120 million. This fundraising mainly comes from retail investors and investment firms. The exchange’s CEO has explained that the market will soon file its registration with the Securities and Exchange Commission this year.
Pushing for Anti-Woke Movements in Texas
Many supporters of this market have applauded the idea of an anti-woke stock exchange in Texas. Others have criticized it. This stock exchange is just the latest attempt to create a so-called anti-woke establishment in Texas.
About two years ago, investors backed what they called an anti-woke bank. However, this bank only lasted three months before it was forced to close.
The Future of the Texas Stock Exchange
Fundraising is still ongoing. So, traders may have to wait a few more years to fully be able to buy and sell at the Texas Stock Exchange.
However, this new market does have sights to begin trading as soon as next year — so the wait won’t be too long. The Texas Stock Exchange also anticipates listing its first stock in 2026.
