The New York Stock Exchange announced on Wednesday that it is launching a new exchange in Texas, potentially positioning the state as a competitor to the US bellwether.
The NYSE said that one of its electronic exchanges, NYSE Chicago, will reincorporate in Texas and be renamed NYSE 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,” said NYSE Group president Lynn Martin.
NYSE is part of Intercontinental Exchange, which acquired NYSE Chicago in 2018.
Texas boasts one of the friendliest business environments in the US, with no corporate or personal income tax. The Lone Star state houses more than 50 Fortune 500 companies and was the top jobs creator in the US last year, according to the governor's office.
Among notable companies to have relocated to Texas in recent years include Tesla, Oracle, Chevron and Charles Schwab.
The state's economy grew by 4.2 per cent in the third quarter of last year, according to the US Bureau of Economic Analysis.
“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,” said Texas Governor Greg Abbott.
The launch of NYSE Texas comes as a potential competitor to the group arrives in the state.
The TXSE Group last month filed a Form 1 registration with the US Securities and Exchanges Commission to operate as a national securities exchange. The group, which received backing from BlackRock and Citadel Securities, had an initial cap raise of $161 million.
The exchange, which hopes to challenge the NYSE to attract global businesses, plans to launch trading in early 2026.
Mr Abbott has been outspoken against the environmental, social and governance (ESG) movement, which promotes sustainability. Mr Abbott said growing backlash against the ESG movement has provided a large opening for an exchange in Texas.
NYSE Texas and TXSE will both be headquartered in Dallas.
