A potential game-changer for investors and the Dallas economy

Texas Stock Exchange: A potential game-changer for investors and the Dallas economy

Reactions are pouring in from across the country after investors announced plans to open a new national stock exchange in Dallas.

The Texas Stock Exchange has secured $120 million in funding and its leaders are seeking to compete with major New York exchanges.

Despite optimism about the potential economic impact a stock exchange could have on the Dallas-Fort Worth area, local experts told NBC 5 the project still faces significant challenges before it can compete with hundreds of billions traded daily on the NASDAQ and NYSE.

On Tuesday, a proprietary company called TXSE announced plans to move forward with the Texas Stock Exchange, hoping to compete with the New York markets by 2026.

“With Texas’ booming economy, business-friendly policies and population growth, the right time has finally come,” TXSE said in a statement announcing the move.

“There is a lot of energy and enthusiasm in the region right now,” said Ray Perryman, president of the Perryman Group.

Perryman, a renowned economist, said Texas is an ideal place to establish a new stock market. In 2023, data showed that Texas surpassed New York in the number of people working in finance and led the nation in job creation and the number of Fortune 500 companies based in the state.

Recent economic growth has prompted companies like Hewlett-Packard and Tesla to move their headquarters to Texas.

“Texas is very attractive; it brings a lot of corporate interest, and there’s already a large base of wealth in the Dallas area,” Perryman said. “So there are a lot of factors that indicate this could work.”

NBC 5 wanted to know if this new market would impact the finances of Dallas-Fort Worth residents who are already invested in the New York stock exchanges.

“It sounds exciting, but for the average investor it won’t have an immediate impact,” said Bill Dendy, president of Alicorn Investment Management.

Dendy said several steps must be completed before the proposed exchange can go live. The Texas Stock Exchange would need approval from the U.S. Securities and Exchange Commission and would guarantee insurance protections for consumers’ investments, which would take time.

Even after launch, it is expected to attract enough investment to remain viable. In recent years, the Boston, Philadelphia and Chicago stock exchanges have all been absorbed by the New York stock exchanges.

However, if the Texas Stock Exchange gains momentum, experts say it could accelerate the economic boom already underway in DFW.

“It will take a while for it to launch, if it actually launches,” Dendy said. “But Texas is special, so it could happen here.”

Experts told that if you already invest in the New York markets, the possible arrival of a new exchange should not have a significant impact on your existing investments.

It might just provide another competitive business option.