Texas Stock Exchange Secures J.P. Morgan Investment, Strengthens Market Position

On October 31, 2025, TXSE Group, the parent company of the forthcoming Texas Stock Exchange (TXSE), announced that J.P. Morgan has made a strategic investment in the company. This investment adds to the support from other major financial institutions, including BlackRock, Charles Schwab, and Citadel Securities, bringing TXSE's total capital raised to over $250 million. The Texas Stock Exchange, founded by James H. Lee, is scheduled to launch in early 2026 and aims to provide increased alignment and transparency for corporate issuers. TXSE now has 82 investors, including seven of the top ten liquidity providers, which collectively handle over 70% of U.S. equity order flow. J.P. Morgan will also have a board observer seat, further enhancing TXSE's market credibility.

TXSE Group Inc. announced plans to create the Texas Stock Exchange in June 2024, aiming to provide a new trading and listings venue for public companies, exchange-traded products (ETPs), and American Depositary Receipts (ADRs). The initial capital raise included participation from major financial institutions and liquidity providers, such as BlackRock and Citadel Securities.

In January 2025, TXSE filed its Form 1 registration with the U.S. Securities and Exchange Commission (SEC) to operate as a national securities exchange. At that time, the company had closed its initial capital raise at $161 million, making it the most well-capitalized exchange to ever file a Form 1.

On September 30, 2025, the SEC formally approved TXSE's Form 1 registration, authorizing it to operate as a national securities exchange. This approval marked the first fully integrated national securities exchange to receive SEC approval in decades.

The addition of J.P. Morgan as an investor and board observer further solidifies TXSE's position in the market. With a total capital raise exceeding $250 million and backing from 82 investors, including seven of the top ten liquidity providers, TXSE is poised to challenge the dominance of established exchanges like the New York Stock Exchange (NYSE) and Nasdaq.

TXSE's focus on alignment and transparency for issuers aims to address concerns about the high costs and regulatory burdens associated with going and staying public. By offering a more business-friendly environment, TXSE seeks to attract companies looking for alternatives to existing exchanges.

Texas has been actively positioning itself as a new financial hub, attracting major corporations like Tesla and SpaceX, which have moved their headquarters to the state. The state's pro-business environment and lower costs have made it an attractive destination for companies and investors.

In response to TXSE's emergence, established exchanges have also taken steps to expand their presence in Texas. In February 2025, the NYSE announced plans to launch an exchange in Texas, increasing competition among listing venues in the state.

The establishment of TXSE and the strategic investments from major financial institutions have several social and economic implications:

• Increased Competition: TXSE's entry into the market introduces competition to the longstanding duopoly of NYSE and Nasdaq, potentially leading to better services and lower costs for issuers and investors.

• Economic Growth: The development of a new stock exchange in Texas could spur economic growth in the region, attracting more businesses and financial services to the state.

• Job Creation: The establishment and operation of TXSE may create new job opportunities in the financial sector within Texas.

• Diversification of Financial Centers: TXSE's launch contributes to the diversification of financial centers in the U.S., reducing the concentration of financial services in traditional hubs like New York.

J.P. Morgan's investment in TXSE underscores the growing momentum behind the Texas Stock Exchange as it prepares to launch in early 2026. With substantial backing from major financial institutions and a focus on alignment and transparency for issuers, TXSE is poised to challenge established exchanges and contribute to the evolution of the U.S. financial landscape.