Texas Governor Greg Abbott sparked conservative backlash over his support for the Lone Star State starting its own stock exchange.
The TXSE Group announced plans on Wednesday to create a Texas Stock Exchange, which would compete with the New York Stock Exchange and Nasdaq, according to a report from The Wall Street Journal. The exchange has received $120 million in funding from investors such as BlackRock and Citadel Securities.
The exchange plans to file registration documents with the Securities and Exchange Commission by the end of 2024 and could begin trading in 2025. The exchange’s backers want it to be more “CEO-friendly” amid new compliance costs and board diversity targets, according to WSJ, which added that it will be “entirely electronic” but will also have a “physical presence” in Dallas.
Abbott on Wednesday expressed support for the exchange.
“Texas Poised for Its Own Stock Exchange: Promising Less Red Tape Than NYSE or Nasdaq. A place where the only agenda is capitalism,” Abbott wrote in a post on X, formerly Twitter.
His remarks sparked criticism from some conservatives over BlackRock’s involvement. Conservatives have been critical of BlackRock over its environmental, social, and governance (ESG) initiatives. ESG programs have become a sticking point for some on the right, who argue that companies that embrace them value social causes over shareholders’ profits.
In fact, Abbott himself has been sharply critical of BlackRock. In 2021, he signed a bill banning financial companies with ESG policies, including BlackRock, from doing business in Texas.
Newsweek reached out to Abbott’s office for comment via email
Texas Governor Greg Abbott speaks in Austin, Texas, on June 8, 2023. Abbott’s support for a new Texas Stock Exchange raised eyebrows from some conservatives.
Brandon Bell/Getty Images
“I am disappointed you believe a Texas stock exchange created by Blackrock is promising or even a close to a good idea for Texans,” X user Paula Masters said.
Another user with more than 78,000 followers, @Arkypatriot, posted, “Did you really say you’re going into business with Blackrock?”
Conservative filmmaker Leland Freeman posted, “One little detail Governor Abbott is leaving out, Blackrock is the one that wants to build this stock market in Texas.”
Others, however, praised the exchange.
“Silicone Valley is moving to Austin. Hollywood is moving to Ft. Worth. Wall Street is moving to Dallas. Texas is gonna get crazy, y’all,” posted writer Ian Harber.
Abbott has worked to attract more businesses to Texas throughout his tenure despite concerns from some companies about the state’s stringent laws surrounding abortion.
The New York Stock Exchange and Nasdaq are considered the two largest stock exchanges in the United States, but smaller exchanges exist in cities like Boston, Chicago, Philadelphia and Miami.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.