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On September 30, 2025, the U.S. Securities and Exchange Commission (SEC) formally approved the Texas Stock Exchange ("TXSE") to operate as a national securities exchange.1 This marks a major milestone — the first fully integrated national exchange approval in many years — and sets the stage for TXSE to begin trading and listing activities in 2026.
For decades, U.S. equity markets have been dominated by two national exchanges: the NYSE and Nasdaq. The SEC's approval of TXSE introduces a new contender, potentially increasing competition in trading, listings, and market structure.
One of TXSE's core ambitions is to help reverse the long-term decline in U.S. public companies. In the 1990s, the U.S. had over 8,000 listed companies; today, that number has fallen to around 4,400. TXSE seeks to compete directly in listings, targeting mid- to large-cap companies. It has adopted a mandatory confidential pre-application review and has publicly noted that approximately 35% of currently listed U.S. public companies would not meet its listing criteria.
Strategic Implications for Energy Companies
Texas remains the core of the U.S. energy economy, and TXSE's approval creates a regulatory and financial platform potentially tailored to that sector.
Key Considerations:
- Legislative Support: Texas Senate Bill 1057 offers favorable governance treatment for companies listed on Texas exchanges—providing incentives even for non-Texas-based companies to list locally.
- Lower Compliance Burden: While maintaining federal compliance, TXSE intends to streamline the listing process, potentially reducing ongoing costs compared to legacy exchanges.
- Industry Alignment: Major TXSE shareholders include Kelcy Warren, executive chairman of Energy Transfer, who owns over 30% of the exchange's parent company. Other major investors include BlackRock, Citadel Securities and Charles Schwab.
- Existing Exchanges & Flexibility: NYSE launched "NYSE Texas" in Dallas. Nasdaq has also announced plans to open a regional headquarters in Dallas. Early indicators suggest energy companies—particularly midstream, E&P, and transition-focused firms—may consider dual-listing, migration, or spinout listings on TXSE. Notably, NRG Energy recently dual-listed on "NYSE Texas," signaling increased regional diversification in exchange strategy.
Footnote
1.https://www.sec.gov/files/rules/other/2025/34-104146.pdf
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