(Reuters) - The Texas Stock Exchange (TSXE), still months away from winning regulatory approval to begin operations, said it hired senior exchange-traded funds executives from Cboe Global Markets ( CBOE ) and Nasdaq to win a share of trading in the $11 trillion U.S. ETF market.

It announced on Thursday that Robert Marrocco, formerly global head of ETP, or exchange-traded products, listings at Cboe Global Markets ( CBOE ), will take on the same role at TXSE and Alison Hennessy, the former head of ETP listings at Nasdaq, will become managing director of exchange traded products.

The hirings signal the Texas exchange views the ETF arena as key to its future growth, analysts said.

"The fact that they are poaching top talent from two of the three biggest exchanges sends a clear signal that they are to be taken seriously" as a future competitor in the ETF sector, said Bryan Armour, ETF strategist at Morningstar.

The TXSE, which has disclosed that it has raised about $161 million in capital from some four dozen investors that include financial giants BlackRock, Citadel Securities and Charles Schwab, filed paperwork in late January seeking regulatory approval to operate a national securities exchange. It hopes to win approval later this year and to begin listing and trading in early 2026.

The hirings not only bolster the TXSE's roster but also may end up creating challenges for the incumbent exchanges, said one market structure analyst, who asked not to be named because his firm does not permit him to comment publicly. In a rapidly growing area such as ETFs, losing top executives to a potential rival is "less than ideal," the analyst said.

"Together, these leaders managed more than 40% of all (exchange-traded products) in the United States," the Texas exchange said in a press release.

A spokesperson for Nasdaq declined comment on Hennessy's departure.

"We wish them well in their future endeavors," Cboe said in an statement, referring to Marrocco and two other Cboe staffers that TXSE also hired.

In its press release, TXSE said that under Marrocco's leadership since 2020, Cboe captured nearly 30% of all new ETP listings.

Marrocco did not respond to requests for comment and a TXSE spokesperson said neither he nor Hennessy were available to discuss their new roles. In a post on LinkedIn, he described TXSE as being "the next chapter of U.S. capital markets."

Marrocco's hiring "indicates that TXSE could prioritize ETP listing, which is a relatively less competitive avenue compared to individual stock listing," said Owen Lau, a senior analyst at Oppenheimer & Co.

The three exchanges that dominate the U.S. stock and ETF trading market have already responded to the TXSE's moves to establish itself as a competitive force. Last month, the New York Stock Exchange announced plans to open its own NYSE Texas division.