TXSE in Dallas Aims to Challenge NYSE and Nasdaq by Targeting ETFs

TXSE in Dallas aims to challenge NYSE and Nasdaq by attracting ETF listings. Advisor Jeb Hensarling says exchange-traded funds will be a central growth focus.

Dallas Innovates, Every Day: The Texas Stock Exchange (TXSE) is staking a bold claim in North Texas as it sets out to compete with the New York Stock Exchange and Nasdaq. While much of the early coverage has focused on courting prestigious corporate and dual listings, a key advisor to TXSE—former Congressman Jeb Hensarling—says exchange-traded funds (ETFs) will be a strategic priority for the new venue.

The ETF market has exploded in recent years, drawing billions in investor flows and spawning a wide variety of thematic and indexed products. For TXSE, pursuing ETF listings is not just about prestige: it’s a practical play to capture liquidity, attract market makers, and offer issuers an alternative listing venue. By positioning itself as an ETF-friendly exchange, TXSE hopes to differentiate from the NYSE and Nasdaq duopoly and create competitive advantages for fund sponsors and investors alike.

Attracting ETFs will require more than ambition. TXSE will need robust trading infrastructure, efficient clearing and settlement relationships, and harmonized listing rules that appeal to issuers. Marketing to ETF providers will also be critical; fund sponsors care about visibility, liquidity, and cost. If TXSE can demonstrate lower fees, faster onboarding, or better promotional support for ETFs, it may build momentum among issuers evaluating dual listings or a primary switch.

The implications for Dallas and North Texas extend beyond the trading floor. A successful TXSE that secures ETF listings could boost the region’s financial services ecosystem, drawing asset managers, fintech firms, and capital market professionals. That growth aligns with Dallas Innovates’ ongoing coverage of how local innovation and business development reshape regional economies.

Challenges remain: regulatory approvals, competition for order flow, and building a track record of reliable execution. Yet the focus on ETFs reflects an intelligent strategy—targeting a rapidly growing asset class where an upstart exchange can win market share without immediately displacing long-established equity listings.

What’s next is watching whether TXSE’s pitch resonates with ETF issuers and how quickly the exchange can operationalize the infrastructure needed to support a lively ETF market. If Jeb Hensarling and TXSE deliver on their ETF ambitions, North Texas could become a more prominent hub in the U.S. capital markets landscape.

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