The Texas Stock Exchange (TXSE) is set to launch in February 2026, marking the first new national stock exchange in the United States in over a decade. Based in Dallas, TXSE represents a significant shift in American capital markets—and broker-dealers need to start preparing now.
Why TXSE Matters
TXSE isn't just another alternative trading system. It's a fully registered national securities exchange that will compete directly with NYSE and NASDAQ. The exchange has already secured over $120 million in funding and commitments from major institutional investors.
For broker-dealers, TXSE offers several compelling advantages: lower listing fees, a business-friendly regulatory environment, and proximity to the rapidly growing Texas financial ecosystem. With major corporations relocating to Texas and the state's economy continuing to expand, TXSE is positioned to capture significant market share.
Connectivity Requirements
TXSE will support FIX 5.0 protocol for order entry and execution. If your firm is still running legacy FIX 4.2 or 4.4 infrastructure, you'll need to upgrade. The good news is that FIX 5.0 offers significant improvements in message handling, session management, and security.
Key connectivity considerations include:
- •Protocol Support: FIX 5.0 SP2 with custom extensions for TXSE-specific functionality
- •Network Options: Direct connectivity via co-location in Dallas, or through certified connectivity providers
- •Latency Targets: Sub-100 microsecond order acknowledgment times for co-located participants
- •Redundancy: Dual-path connectivity requirements for production environments
Certification Process
TXSE has announced a multi-phase certification process that will begin in Q3 2025. The process includes:
- 1.Technical Certification: Validate FIX connectivity, message formatting, and session management
- 2.Functional Testing: Order entry, execution, cancellation, and modification workflows
- 3.Risk Controls: Pre-trade risk checks, position limits, and circuit breakers
- 4.Production Readiness: Full end-to-end testing in production-like environment
Timeline and Next Steps
Here's a suggested timeline for broker-dealers planning to trade on TXSE from day one:
- •Q1 2025: Assess current infrastructure and identify gaps
- •Q2 2025: Begin FIX 5.0 upgrade if needed; engage connectivity providers
- •Q3 2025: Complete technical certification; begin functional testing
- •Q4 2025: Production readiness testing; staff training
- •Q1 2026: Final preparations; go-live planning
- •February 2026: TXSE launches
How Kilobytez Can Help
As a Dallas-based financial technology consultancy, we're positioned to be your partner for TXSE connectivity. Our team has built FIX integrations for exchanges worldwide, and we're already working with TXSE on connectivity specifications.
We offer end-to-end TXSE preparation services including infrastructure assessment, FIX 5.0 migration, certification support, and ongoing operational support. Contact us to discuss your TXSE readiness strategy.