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The hype around this summer’s announcement of a Texas Stock Exchange and the growth of the Dallas-Fort Worth region into the second largest financial services sector in the country has made national headlines in the Wall Street Journal and Bloomberg over the last month and been the subject of Op-Eds in the Dallas Morning News. And yet many believe the growing influence of DFW as a financial hub is still underreported.
Dallas-based law firm Haynes Boone is at the center of the establishment of the TXSE. Lawyers at the firm first met with TXSE CEO James Lee in the summer of 2023 to develop a preliminary legal structure and capital raising plan. Lee has since secured a reported $120 million from dozens of individual investors and prominent firms like BlackRock and Citadel Securities and has aims at being open for business in late 2025.
The Texas Lawbook visited with two Haynes Boone attorneys playing key roles, Greg Samuel and Logan Weissler, about the major hurdles ahead, how TXSE became a client, and the downstream effects of a national exchange in Dallas for the Texas legal market.
How long has TXSE been in the works? When did things really pick up? Why now?
Greg Samuel: The idea for a Texas-based national stock exchange has actually been around since at least the 1960s. Now, it’s finally coming to fruition. We first met with Jim Lee about this project in our offices here in Dallas in the early summer of 2023, where he shared his long-held vision with us and we sketched out a preliminary legal structure and capital raising plan. We have been working with Jim since that time on formation, capital raising, negotiations and other corporate and exchange matters, but have been in a full-on sprint since the fall on the raise and rollout of the exchange. The project required a very tight working group dedicated to working rapidly in an intensely discreet manner. The TXSE team believes now is the time for a new market entrant to create competition and drive innovation, and the rapid economic expansion in Texas and other states throughout the southeast quadrant of the U.S., particularly in the financial services industry, has created natural momentum to leverage in the launch.
How did Haynes Boone get the nod to lead the legal work for TXSE?
Logan Weissler: While we had many pre-existing relationships with Jim and TXSE’s stakeholders through a number of our partners, Jim was looking for the quintessential “Dallas” law firm with deep securities expertise and roots in the community to lead the effort. As the largest law firm presence in Dallas with a reputation of handling the most sophisticated corporate matters in the area for over 50 years, we were a natural partner for Jim. It also helped that the individuals on the deal team were personally deeply connected in DFW and had a wealth of resources and experience to offer Jim and TXSE. Greg has had a Dallas-based practice in corporate securities at Haynes Boone for nearly 40 years, and I am an area native and have worked heavily in both the Dallas and Houston markets for the past six years at national law firms. Haynes Boone routinely gets the “first call” for new clients looking to start or expand their operations in Dallas and TXSE was no different.
One benefit of having the exchange as a current client is that the firm could potentially be exposed to new companies that need representation, even if they don’t choose to go public. How much of this plays a factor in the firm’s own future growth plans?
Samuel: The firm has been in a period of rapid expansion in a number of its core markets, including North Texas. This project has obviously been a high-profile and exciting matter for us, and our hope is that it will help potential clients view us as the first and natural option when looking to expand their presence in Texas and the region more broadly. A matter of this nature also inevitably grows our reputation outside of our home state, including in the New York market where our office is approaching 100 attorneys, and our London office continues to grow quickly in size and reputation as well. We’re excited to continue to grow our profile both locally and in national markets where potential clients may be familiarizing themselves with our platform.
Why the focus on attracting companies in the southeastern U.S.?
Weissler: TXSE will be a national stock exchange that will offer primary and dual listings for corporates, exchange-traded products, and ADRs from across the country and around the world. The initial addressable market will be the 1,500 public companies and the more than 14,000 sponsor-backed private entities within the southeast quadrant of the United States. That’s because the economic growth in the region has been nothing short of staggering. Additional corporate relocations and substantial reallocations of resources to the region occur daily, and so the target market is more of a function of where the most activity is occurring as opposed to geographic convenience or other alignments. The Wall Street Journal reported earlier this month that Dallas is behind only New York in the number of financial services jobs in the country. We receive inquiries daily from clients looking to build out their presence in Texas.
What are the major hurdles ahead for the TXSE launch?
Samuel: As you would expect, starting a national securities exchange involves a stringent regulatory process and scaling of operations. We’re excited to be involved as TXSE continues to build its team in Dallas. There will be lots of hard work behind the scenes in the coming months and years to ensure a successful rollout.
What is the criteria for companies looking to list on the exchange?
Weissler: The listing criteria are in the process of being developed by the TXSE team and its advisors. We are very limited in what we can say on this for the moment but look forward to the rollout.
What do you think are the downstream effects of TXSE for the Texas legal market?
Samuel: TXSE is just another sign that Texas has become an international hub for businesses. Texas is home to some of the country’s most sophisticated and experienced lawyers, which is evidenced by the increasing number of matters serviced by Texas-based lawyers and the exponential growth of both Texas-based firms and national entrants. We’re hopeful that as companies look to list on TXSE and expand their operations in Texas, that this endeavor will serve to benefit both Haynes Boone and our neighbors at other firms and service providers. It is a very exciting time to practice law in Texas, especially in Dallas. The announcement of TXSE is perhaps the biggest indicator yet that Dallas is becoming an indispensable location for national and international business.