The Texas Stock Exchange (TSXE), which is set to begin operations soon, has recruited senior executives from Cboe Global Markets and Nasdaq to penetrate the $11 trillion U.S. ETF market.
Recently, Robert Marrocco, the former global head of ETP listings at Cboe, will assume the same role at TXSE, and Alison Hennessy, previously in charge of ETP listings at Nasdaq, will become the managing director of exchange-traded products.
Analyzing the hires, experts highlighted the exchange's strategic focus on the ETF sector for its future growth. Bryan Armour, an ETF strategist at Morningstar, noted that the recruitment of top talent from leading exchanges indicates TSXE's emergence as a serious competitor in the ETF market.
TXSE has secured $161 million in capital from key investors like BlackRock, Citadel Securities, and Charles Schwab. It aims for approval later in the year to commence trading in early 2026.
While strengthening TSXE's team, the new recruits may pose challenges for existing exchanges. The departure of executives may not be ideal for incumbent exchanges in the rapidly growing ETF sector.
Marrocco's achievements at Cboe, where he led significant ETP listings growth, underscore his role in TXSE's potential focus on ETP listings. Owen Lau, a senior analyst at Oppenheimer & Co, believes that prioritizing ETP listings could provide a less competitive avenue compared to individual stock listings.
In response to TSXE's positioning, the major U.S. exchanges have taken steps to reinforce their presence. Last month, the New York Stock Exchange declared plans to launch its NYSE Texas division.