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Oct 31 (Reuters) - TXSE Group said on Friday Wall Street behemoth J.P. Morgan had made a strategic investment in the company, becoming the latest to join a roster of marquee backers of the Texas Stock Exchange-parent. Sign up here. Analysts say this marks the first serious challenge to a market long dominated by the New York Stock Exchange and Nasdaq in a virtual duopoly since the 2000s. "The Texas Stock Exchange's focus on alignment and transparency for issuers will alter the trajectory of our public markets and help establish Texas as a new global leader in capital markets," TXSE's Founder and CEO James Lee said. Texas has made no secret of its ambitions to rival New York as the financial epicenter of the United States, pitching itself as a lower-cost, business-friendly alternative for firms and investors. TXSE said a total of 82 financial institutions and business leaders are now its investors, including seven of the top 10 largest liquidity providers which represents more than 70% of total U.S. equity order flow. Such backing is crucial for a new exchange as it ensures access to deep liquidity and trading volume, key factors in attracting listings and establishing credibility with market participants. The company added J.P. Morgan will join its board of directors as an observer. Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri
