TXSE Group Inc. Announces Plans to Create the Texas Stock Exchange

TXSE to provide new trading and listings venue for public companies, ETPs and ADRs

Recently completed capital raise includes global financial institutions, major liquidity providers and prominent business leaders from across the United States

DALLAS, June 5, 2024 — TXSE Group Inc. announced today that it plans to launch the Texas Stock Exchange (TXSE), headquartered in Dallas. TXSE will focus on enabling U.S. and global companies to access U.S. equity capital markets and will provide a venue to trade and list public companies and the growing universe of exchange-traded products. TXSE will be a fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission.

TXSE Group Inc. successfully completed its initial capital raise with participation from more than two dozen investors, including some of the largest financial institutions and liquidity providers in the world, such as BlackRock and Citadel Securities, as well as prominent business leaders from around the country.

The liquidity providers backing TXSE Group Inc. represent a significant portion of the equity volume on U.S. lit exchanges and together comprise a majority of all U.S. listed retail volume. With approximately $120 million of capital raised, TXSE is expected to be the most well-capitalized exchange entrant to file a registration with the U.S. Securities and Exchange Commission.

TXSE’s planned launch comes as changes in the equity markets provide an opportunity for greater alignment and more competition. Corporate issuers and exchange-traded product sponsors are demanding more stability and predictability around listing standards and associated costs. TXSE intends to expand access to U.S. capital markets for all investors, while providing greater access and alignment for public companies and those seeking access to public capital.

“Changes in equities trading markets are driving more volume to exchanges and more choices for issuers and sponsors,” said James Lee, founder and CEO of TXSE Group Inc. “TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike.”

Texas and the other states in the southeast quadrant of the U.S. lead the nation in economic expansion and population growth, making Texas the clear choice for the establishment of a new national securities exchange. For decades, Texas has been the nation’s leader in attracting business relocations and expansions. It’s home to more Fortune 500 companies than any other state and more than 5,200 private equity-sponsored companies, many of which are preparing to access the public markets. In addition, there are more than 1,500 publicly traded companies throughout the region.

“We’re thrilled to bring to fruition the long-held vision for a national stock exchange in Texas,” Lee said. “Texas and the other states in the southeast quadrant have become economic powerhouses. Combined with the demand we are seeing from investors and corporations for expanded alternatives to trade and list equities, this is an opportune time to build a major, national stock exchange in Texas.”

TXSE intends to submit a registration with the U.S. Securities and Exchange Commission to operate as a national securities exchange later this year.

About TXSE Group, Inc:

TXSE Group Inc. is the parent company of the Texas Stock Exchange. TXSE will focus on enabling U.S. and global companies to access U.S. equity capital markets and will provide a venue to trade and list public companies and the growing universe of exchange-traded products. Subject to approval by the U.S. Securities and Exchange Commission, TXSE will be a fully electronic, national securities exchange providing access to the U.S. equity markets. More information is available at www.txse.com.

WoodRock Securities (Houston) acted as exclusive financial advisor and sole placement agent for TXSE Group Inc. Cravath, Swaine & Moore (Washington, D.C.) serves as regulatory counsel to the Texas Stock Exchange. The Dallas office of Haynes and Boone LLP served as counsel to TXSE Group Inc. in the offering and will serve as corporate counsel. PwC Consulting serves as managed services provider for TXSE Group Inc.

The southeast quadrant of the U.S. is defined as Texas, Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Tennessee.

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