The Texas Stock Exchange (TXSE) will start live trading this Friday, July 10th.
Based in Dallas, Texas, the TXSE represents a significant challenge to New York City which has long dominated global markets and is home both to the NYSE and Nasdaq.
The City of New York has recently elected a socialist as Mayor, an individual who is hostile to markets and capitalism in general. The anti-business policy has been noted by business leaders both in finance and in other industries. Meanwhile, Texas is a competitive low tax state, assessing no tax on income, and is outwardly supporting business. For example, JP Morgan now has more employees in Texas than in New York City.
There has been recent trend where large corporations are redomiciling in Texas due to the business friendly environment.
Texas is already the 8th largest economy in the world at $2.9 trillion and recently topped California for number of Fortune 500 headquarters.
To put this in perspective, Texas is predicted to soon have an economy larger than France with about half of the population.
While the TXSE officially launched on July 6th, live public trading commences on July 10th for a small group of securities and funds. Over the coming weeks, more shares will trade on the exchange.
The TXSE has been backed by leading financial services firms like BlackRock, Citadel, Goldman Sachs and others.
Described by some as “Y’All Street” Dallas is now the second largest hub for financial services jobs in the country – trailing New York City.
The Fintech sector is also growing in the city with groups like FinTexas supporting the development and relocation of Fintech businesses.
Expect Dallas and Texas as a center for financial innovation to continue to grow and New York City to struggle as entrepreneurs and establishment finance both look for a more welcoming jurisdiction to operate and provide services. The TXSE is a prime example of this trend.
