A potential game changer for investors, Dallas’ economy – NBC 5 Dallas-Fort Worth

Reactions are coming from across the country after investors announced plans to open a new national stock exchange in Dallas.

The Texas Stock Exchange has $120 million in funding lined up, and its leaders hope to compete with New York’s major stock markets.

Amid optimism about the potential economic impact a fair could have on the DFW area, local experts told NBC 5 the project still had hurdles to overcome before it could compete with the hundreds of billions traded daily on the NASDAQ and NYSE traded.

On Tuesday, a proprietary company called TXSE announced it is moving forward with the Texas Stock Exchange, hoping to rival the New York markets by 2026.

“With Texas’ booming economy, pro-business policies and growing population, the right time has finally come,” TXSE said in a statement announcing the move.

“There is a lot of energy and excitement in the region right now,” said Ray Perryman, president of The Perryman Group.

Perryman, a renowned economist, said the Lone Star State is a desirable place to build a new stock market.

Data shows that in 2023, Texas was home to more people working in the financial sector than New York State, and the state led the nation in job creation and the number of Fortune 500 companies within its borders established.

And recent economic growth has prompted companies like Hewlett-Packard and Tesla to establish their headquarters here.

“Texas is very attractive; it brings a lot of corporate interests, and there is already a large wealth base in the Dallas area,” Perryman said. “So there are a lot of things that say this could work very well.”

NBC 5 wanted to know if this new market would impact the money of people living in Dallas-Fort Worth who are already invested in the New York stock markets.

“It sounds exciting, but for the average investor this won’t have an immediate impact,” said Bill Dendy, president of Alicorn Investment Management.

Dendy said several steps had to be completed before this proposed exchange could go online. The Texas Stock Exchange would need to be approved by the U.S. Securities and Exchange Commission and provide insurance protection for consumers’ invested money, which would take time.

Even after opening, it should attract enough investment to stay afloat. In recent years, the Boston, Philadelphia and Chicago stock markets have all been absorbed by the New York stock markets.

But if the Texas Stock Exchange could gain traction, experts say it would accelerate the economic boom already underway in DFW.

“If it does actually launch, it will take a while to launch,” Dendy said. “But Texas is special, so it could happen here.”

Experts told NBC 5 that if you already invest in the New York markets, the eventual arrival of a new stock exchange should not have a significant impact on your existing investments. It could simply provide a new competitive option for people to trade.