Key facts
- Energy Transfer, USA Compression Partners, and Sunoco LP will move their primary listings from the NYSE to the TXSE in early October.
- The combined market capitalization of the entities shifting their listings is nearly $100 billion.
- Texas Capital Bancshares previously announced two of its ETFs would move to the TXSE.
- TXSE began trading in July.
- TXSE is backed by investors including BlackRock, Citadel Securities, and Charles Schwab.
The Texas Stock Exchange (TXSE) has secured primary listings for three energy partnerships: Energy Transfer, USA Compression Partners, and Sunoco LP, which will transition from the New York Stock Exchange (NYSE) in early October. This move follows a similar announcement last month where Texas Capital Bancshares decided to move two of its ETFs to the TXSE. The startup exchange, which began trading in July, aims to establish itself as a significant competitor to established venues like the NYSE and Nasdaq.
TXSE Chairman and CEO James Lee described the announcements as a "watershed moment for capital markets" and the "beginning of a larger trend that will reshape the broader listings landscape in the United States." The combined market capitalization of the entities shifting their primary listings to the TXSE is nearly $100 billion.
Analysts suggest that TXSE's ability to challenge the NYSE and Nasdaq hinges on its success in marketing Texas as a business-friendly alternative. However, previous attempts to replicate this strategy have not gained significant traction. The NYSE and Nasdaq have historically dominated primary listings due to their established infrastructure, liquidity, and perks for listed companies, such as the ability to ring opening or closing bells.
TXSE is attempting to differentiate itself by emphasizing Texas's legislative and regulatory initiatives, including enhanced legal protections for businesses against shareholder litigation. Some major companies, like Tesla and SpaceX, have already moved their corporate headquarters to Texas, but have not yet shifted their primary listings. To benefit from Texas's legal advantages, companies listing on TXSE must also be incorporated in the state.
In response to TXSE's push for listings, both the NYSE and Nasdaq have established Texas branches. TXSE is backed by prominent Wall Street investors, including BlackRock, Citadel Securities, and Charles Schwab, as well as Texas billionaire Kelcy Warren, who is the executive chairman of Energy Transfer.