For generations, Wall Street has been synonymous with the U.S. stock market. The New York Stock Exchange and Nasdaq have long dominated corporate stock listings, making New York the center of U.S. securities trading. Now, the Texas Stock Exchange is trying to bring more of that business to Texas.

The Texas Stock Exchange, known as TXSE and pronounced “tex-ee,” is a Dallas-based stock exchange that’s attempting to compete for companies, investors, and trading activity. Launched in 2024, TXSE began trading U.S.-listed stocks in July 2026. Its challenge is convincing corporations to make TXSE their primary listing exchange rather than the NYSE or Nasdaq.

What Does a Stock Exchange Actually Do?

Understanding why TXSE matters starts with understanding the role of a securities market. Securities markets allow investors to buy and sell securities and provide liquidity, meaning investors can convert securities into cash relatively quickly and efficiently. In the primary market, firms raise financial capital by issuing securities, and in secondary markets investors trade existing securities with other investors. A stock exchange is part of that secondary market infrastructure. 

Companies choose an exchange on which to list their shares, but shares can often trade across multiple venues. That distinction is important in understanding TXSE. Becoming a company’s primary exchange does not necessarily mean that every trade in that company’s stock will occur there. U.S. stock trading is spread among numerous exchanges and other trading venues. Still, winning primary listings is important. Exchanges can collect annual listing fees, and primary exchanges host opening and closing auctions that attract considerable trading activity.

Energy Transfer and Dillards

TXSE’s early breakthrough came from Energy Transfer, a Dallas-based pipeline company, when it prepared to move its primary listing from the New York Stock Exchange to TXSE. The move was significant because Energy Transfer would be the first major corporation to make the switch. Energy Transfer’s executive chair Kelcy Warren owns roughly a 30 percent stake in TXSE Group, the exchange’s parent company, and was one of its early investors.

TXSE has financial backing from other prominent institutions, including BlackRock, JPMorgan Chase & Co., and Citadel Securities. Bloomberg reported that TXSE has raised more than $300 million. Those connections give the exchange credibility.

Dillard’s Inc. announced that it planned to move its primary securities listing from the NYSE to TXSE, becoming the first retailer to join the exchange. Dillard’s had a market value of about $10 billion when the announcement was made in September 2026. The company said the move connected its strong presence in Texas (the company’s largest market) with TXSE’s technology-driven platform. Within a short period, several other companies announced plans to join TXSE, including Sunoco and Texas Capital Bancshares.

Why Switch Exchanges?

Technology, fees, market quality, trading activity, branding, and corporate governance can all influence the decision to switch exchanges. For TXSE, geography is also part of the strategy. Texas has worked to strengthen its position as a business and financial center. The state has created specialized business courts, and some corporations, including Tesla, have moved their state of incorporation to Texas.

Texas has also adopted laws that can give some companies greater flexibility in dealing with shareholder proposals and other governance questions. Companies attracted to Texas’ corporate legal environment may also find a Texas-based securities exchange appealing. TXSE itself emphasizes its relationship with the state’s business environment and has promoted Texas as a favorable location for corporations.

Competition 

TXSE is not the only exchange betting on Texas. The NYSE and Nasdaq have responded by establishing Texas-based operations of their own. That means TXSE is entering a market in which its largest rivals already have established relationships with corporations, investors, brokers, and financial institutions.

New stock exchanges have entered the U.S. market before, but many have struggled to attract substantial listings and trading volume. The value of an exchange depends heavily on participation and liquidity. Companies may be attracted to markets with strong trading activity, while trading activity tends to follow securities that investors want to buy and sell. TXSE has to develop both sides at the same time.

Whether Dallas eventually becomes a major center for corporate stock listings remains uncertain. What TXSE has demonstrated, however, is that the business of running a stock exchange is competitive. The exchange is a company competing for customers.

In the Classroom

This article can be used to discuss securities markets and stock exchanges (Chapter 16: Financial Management and Securities Markets).

Discussion Questions

  1. Why might moving a company’s primary listing to TXSE be important even if much of the company’s stock continues to trade on other exchanges?

  2. Why was Energy Transfer’s decision to move its primary listing important to TXSE? 

  3. What challenges does TXSE face as it competes with the NYSE and Nasdaq?

This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.