A new stock exchange is coming to Texas. This is happening because the New York Stock Exchange (NYSE) is expanding. It is making this move because many companies want to set up their headquarters in the state, which is known for being friendly to businesses.
On February 12, the NYSE made an announcement. It announced that one of its electronic stock exchanges, the NYSE Chicago, will officially move its registration to Texas. Its name was even changed to NYSE Texas. This means companies will now have the option to list their stocks in Texas instead of just in New York.
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Lynn Martin, the president of NYSE Group, said that Texas already has most of the companies listed on the NYSE. It has a total stock market value of over $3.7 trillion. She also mentioned that Texas has created an environment that encourages businesses to grow.
The New York Stock Exchange (NYSE) is owned by a company called Intercontinental Exchange (ICE). One of its branches, NYSE Chicago, used to be called the Chicago Stock Exchange until ICE bought it in 2018.
This new stock exchange, which is being planned in Texas, could compete with the NYSE. TXSE Group has applied to the U.S. government to register the Texas Stock Exchange officially. TXSE Group has already raised $161 million. It hopes to start trading in early 2026.
Texas Governor Greg Abbott gave one reason for creating a Texas-based exchange in an interview last year. He said the reason was to challenge certain environmental, social, and governance (ESG) policy rules. ESG rules are guidelines that encourage businesses to consider some things. These things include climate change and fair working conditions when making financial decisions. Some states, including Texas, have opposed these rules, arguing that Wall Street firms are pushing them too much.
Governor Greg Abbott is saying that businesses in Texas and similar states should not be blocked from accessing money and financial markets in New York just because of the political decisions made there.
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Texas is also becoming a popular state for big companies to register as their official legal home. The state is now competing with Delaware, which used to be the top choice. For instance, Tesla officially moved its legal registration to Texas last year. This happened after a legal dispute occurred in Delaware over CEO Elon Musk’s pay. The Wall Street Journal recently reported that Meta is also considering making the same move.
Most stock trading at the New York Stock Exchange (NYSE) and other major exchanges worldwide is done electronically. Even though a company may have a main exchange where its stock is listed, its shares can still be bought and sold on multiple exchanges.