TXSE Group, the parent company of the Texas Stock Exchange, has completed its third financing round, bringing its capital position to $430 million as it expands primary listings and trading operations. The financing was announced one year after the U.S. Securities and Exchange Commission approved TXSE’s application to operate as a national securities exchange.
TXSE said the financing gives it the largest amount of capital ever raised by a new exchange and leaves the organization with a record cash surplus that can support additional reserves and strategic initiatives.
Existing shareholders accounted for more than 75% of the latest financing round. Major TXSE investors include BlackRock, Charles Schwab, Citadel Securities, J.P. Morgan, Goldman Sachs, and Bank of America.
The Texas Stock Exchange is positioning itself as a third major U.S. venue for corporate and exchange-traded fund listings alongside the New York Stock Exchange and Nasdaq.
TXSE said companies representing approximately $115 billion of combined market capitalization announced moves to the exchange during a recent 20-day period, reflecting increasing interest in its primary listing business.
The exchange’s shareholder base includes investors or organizations connected with companies representing more than $4 trillion in market capitalization. It also includes nine of the 10 largest liquidity providers, which TXSE said represent more than 85% of U.S. equity order flow.
TXSE’s investor ecosystem also includes sponsors representing more than 1,000 ETFs with $11 trillion in combined assets under management, equal to roughly two-thirds of total U.S. ETF assets cited by the company.
The additional capital is expected to support continued scaling of primary listings and continuous trading, along with other strategic projects as TXSE develops its national exchange platform.
KEY QUOTES:
“Real competition for primary listings is here, and it is here to stay. Our historic capital position is an institutional validation of the demand for a legitimate third listing alternative, and that is exactly what we have deployed.”
James H. Lee, Chairman and CEO of TXSE Group
“Our record cash surplus further positions TXSE to substantially increase its capital reserves while providing the flexibility for strategic initiatives. We look forward to leveraging our capital position to accelerate our scaling of primary listings and continuous trading.”
Jaime Gow, Chief Financial Officer of TXSE Group
