The Texas Stock Exchange reached a major milestone Monday as nearly $100 billion in corporate market value began trading on the Dallas-based exchange, marking TXSE’s first corporate primary listings.
Energy Transfer, Sunoco, SunocoCorp, and USA Compression Partners transferred their primary listings and related securities to TXSE beginning October 5. Dillard’s separately moved its Class A common stock and trust securities from the New York Stock Exchange to the Dallas exchange the same day, according to a TXSE notice.
Nearly $100 Billion Moves to Dallas Exchange
TXSE announced ahead of Monday’s launch that Energy Transfer, Sunoco, SunocoCorp, and USA Compression Partners were scheduled to transfer their primary listings and related securities beginning October 5.
The four Energy Transfer-affiliated companies represent nearly $100 billion in combined market capitalization.
Energy Transfer trades under the ticker ET, Sunoco under SUN, SunocoCorp under SUNC, and USA Compression Partners under USAC. TXSE’s readiness notice listed those symbols for the October 5 transfers.
Energy Transfer first announced its move on September 10, saying its common units and Series I preferred units were expected to begin trading on TXSE on October 5. The company said its common units would retain the ET ticker.
At the time, TXSE Chairman and CEO James H. Lee said the movement of primary listings from New York to Texas “has begun.”
Dallas-based Energy Transfer operates approximately 140,000 miles of pipeline and associated energy infrastructure across the United States, according to the company’s release.
Dillard’s Leaves NYSE for TXSE
Dillard’s also began its move to TXSE Monday under its existing DDS ticker.
The retailer notified the Securities and Exchange Commission in a September filing that it intended to voluntarily withdraw the primary listings of its Class A common stock and the 7.50% Capital Securities of Dillard’s Capital Trust I from the NYSE and transfer them to TXSE.
The securities were expected to stop trading on the NYSE as primary listings after the October 2 market close and begin trading on TXSE at the October 5 market open.
Dillard’s retained DDS for its Class A common stock and DDT for its trust securities, according to the same SEC filing.
TXSE separately confirmed that both securities were expected to be admitted to listing October 5.
The Dillard’s transfer is separate from the nearly $100 billion represented by the four Energy Transfer-affiliated companies.
TXSE Enters Corporate-Listings Market
Monday marks a new phase for TXSE, which began production, quoting, and trading operations in July.
As The Dallas Express reported July 6, the Dallas-headquartered exchange launched trading operations as part of a phased rollout aimed at competing with established exchanges including the NYSE and Nasdaq.
TXSE moved into primary listings in September.
Texas Capital’s Texas Equity Index ETF and Texas Oil Index ETF transferred from NYSE Arca and began trading on TXSE on September 16, becoming the first primary listings on the exchange and the first primary listings on a Texas-based stock exchange, according to a TXSE release.
TXSE had previously said corporate securities would follow on October 5.
The distinction matters because a primary listing establishes the exchange responsible for an issuer’s listing relationship, even though securities can trade across multiple venues.
Monday therefore represents TXSE’s move beyond exchange-traded products and into direct competition for corporate primary listings.
Dallas Builds ‘Y’all Street’
The transfers add momentum to Dallas’ broader effort to become a larger U.S. financial center.
TXSE describes itself as a fully electronic national securities exchange built and headquartered in Dallas. Its listing business is designed to attract companies pursuing initial public offerings as well as established issuers transferring existing listings, according to its listings page.
The latest moves are significant because established companies are shifting their primary listings away from New York rather than simply making their securities available to trade through another venue.
TXSE also announced in September that S&P Dow Jones Indices, MSCI, and FTSE Russell had updated their methodologies to accommodate TXSE-listed securities, allowing companies with TXSE primary listings to remain eligible for major indexes.
For the Dallas-based exchange, October 5 marks its first major test in the corporate-listings market after months of building trading infrastructure and launching exchange-traded product listings.
