NYSE plans Texas Exchange as financial firms flock to state
The New York Stock Exchange plans to start an equities exchange in Texas, the latest firm seeking a slice of the financial services industry in a state where the taxes are lower and regulation looser.
NYSE said it will reincorporate its NYSE Chicago operations in Texas and will launch the fully electronic exchange in Dallas, pending regulatory filings. The exchange will serve companies from Texas and around the world, it said.
NYSE’s move underscores the heightened allure of Texas for corporations and financial firms seeking to benefit from a more relaxed regulatory environment than blue states like New York and California. Dallas is host to the Texas Stock Exchange, which counts BlackRock Inc. and Citadel Securities among its backers and plans to begin trading in early 2026. Nasdaq last year reorganized its listings business into three regional divisions including Texas.
“As the state with the largest number of NYSE listings, representing over $3.7 trillion in market value for our community, Texas is a market leader in fostering a pro-business atmosphere,” NYSE President Lynn Martin said in a statement.
The NYSE’s plans give another boost to the Dallas-Fort Worth area, which already has more finance workers than Chicago or Los Angeles, trailing only New York. Goldman Sachs Group Inc. is building a new campus in Dallas that will house about 5,000 employees.
‘Financial Might’
“With the launch of NYSE Texas, we will expand our financial might in the United States and cement our great state as an economic powerhouse on the global stage,” Texas Governor Greg Abbott said.
Although the state is known for its business-friendly approach, the Texas Stock Exchange has faced some other challenges. It was already contending with an uphill climb to secure listings. Its promises to avoid what could be seen as political requirements, like board composition requirements, have lost punch as companies have begun rolling back diversity and environmental pledges. It would also need to bite off business from private equity.
“They’re not only competing against the New York Stock Exchange and Nasdaq,” said Andrew Silverman, an analyst with Bloomberg Intelligence. “They’re also competing against Blackstone. They’re also competing against Apollo. They’re also competing against Berkshire Hathaway.”
TXSE Group Inc., parent company of the proposed Texas Stock Exchange, recently closed its initial fundraising round at $161 million and said TXSE has filed for registration as a bourse with the U.S. Securities and Exchange Commission.
“We are committed to closely aligning with issuers and investors to provide a premier venue for listing and a world-class platform for trading,” a spokesperson for TXSE said in a statement. “We have known all along that Texas is the best place to do business.”
NYSE and its biggest rival Nasdaq dominate the IPO market, which is rebounding after a lengthy slump on geopolitical uncertainty, inflation and higher interest rates. Nasdaq Chief Executive Officer Adena Friedman said last month she expects a strong environment for IPOs in the second quarter and rest of the year.
NYSE’s move to Dallas is “going to bring more financial firms with it, and force Texas to reinforce its infrastructure,” said David Choate, chief operating officer of Dallas-based brokerage firm CAPIS. “You’re always wanting to be on the cutting edge of technology if you’re hosting financial firms like exchanges,” he said.