The Texas Stock Exchange (TXSE), still months away from receiving regulatory approval to begin operations, has made a strategic move to capture a share of the $11 trillion U.S. exchange-traded fund (ETF) market. On Thursday, the exchange announced the hiring of two prominent executives from major U.S. exchanges—Robert Marrocco from Cboe Global Markets and Alison Hennessy from Nasdaq.
Marrocco, who previously served as the global head of exchange-traded products (ETP) listings at Cboe, will take on the same role at TXSE. Hennessy, the former head of ETP listings at Nasdaq, will become TXSE’s managing director of exchange-traded products. These appointments signal the exchange’s strong focus on ETFs as a core component of its long-term growth strategy.
Industry analysts view the hires as a clear indication that TXSE is serious about competing in the growing ETF space. Bryan Armour, an ETF strategist at Morningstar, noted that the decision to recruit top talent from two of the three largest exchanges in the U.S. underscores TXSE’s ambition to become a significant player in the sector. “The fact that they are poaching top talent sends a clear signal that they are to be taken seriously as a future competitor in the ETF market,” Armour said.
The Texas exchange, which has raised approximately $161 million in capital from investors including BlackRock, Citadel Securities, and Charles Schwab, filed paperwork in late January to seek regulatory approval to operate as a national securities exchange. TXSE hopes to secure this approval later this year and begin listing and trading in early 2026.
The new hires not only bolster TXSE’s leadership team but could also pose challenges for established exchanges. According to a market structure analyst, the departure of senior executives to a potential rival in a rapidly expanding market like ETFs is “less than ideal” for incumbent exchanges. The analyst, who requested anonymity, pointed out that Marrocco and Hennessy together managed over 40% of all ETPs in the U.S., making their loss significant.
In response to the hires, a Nasdaq spokesperson declined to comment on Hennessy’s departure, while Cboe expressed good wishes to Marrocco and two other Cboe staffers recently hired by TXSE. “We wish them well in their future endeavors,” Cboe said in a statement.
TXSE also emphasized Marrocco’s track record at Cboe, where he helped capture nearly 30% of all new ETP listings under his leadership since 2020. In a LinkedIn post, Marrocco described his move to TXSE as “the next chapter of U.S. capital markets,” though neither he nor Hennessy were available for further comment.
Owen Lau, a senior analyst at Oppenheimer & Co., speculated that TXSE could prioritize ETP listings—an area with relatively less competition compared to individual stock listings—due to Marrocco’s expertise and the growing importance of ETFs in the market.
As TXSE prepares for its launch, it is facing direct competition from the established U.S. exchanges. In response to the rise of the Texas exchange, the New York Stock Exchange recently announced plans to open its own NYSE Texas division, signaling the fierce rivalry ahead in the race for dominance in the U.S. ETF market.
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