JPMorgan Chase & Co. is leading a group that’s investing about $90 million in a second round of financing for the Texas Stock Exchange, giving a boost to the Dallas-based upstart as it angles for a piece of a market dominated by Nasdaq and the New York Stock Exchange.
The deal brings the total capital raised for the Texas Stock Exchange to more than $250 million, parent company TXSE Group said in a statement Friday. JPMorgan will join TXSE Group’s board of directors as an observer.
“Our strong capital position validates our mission to bring increased competition to the US capital markets,” TXSE Group founder James Lee said in the statement. “The Texas Stock Exchange’s focus on alignment and transparency for issuers will alter the trajectory of our public markets and help establish Texas as a new global leader in capital markets.”
The TXSE, which recently received approval from the US Securities and Exchange Commission and plans to begin trading in 2026, is trying to entice potential listing companies with less burdensome regulations. Earlier this year, it announced its initial capital raise of $161 million, with backers including BlackRock Inc., Citadel Securities and Charles Schwab Corp., as well as Texas energy billionaire Kelcy Warren.
The new marketplace faces an uphill climb against the duopoly of Nasdaq and the NYSE. Each has pushed to increase its visibility in Texas, with NYSE moving its Chicago operations to Dallas under the name NYSE Texas. At least 25 firms signed up to dual list on that exchange in August alone.
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