The New York Stock Exchange (NYSE) is making a move to Texas to better serve the increasing number of businesses flocking to the Lone Star State.
In a big announcement on Wednesday, the NYSE revealed that its electronic exchange, NYSE Chicago, will soon reincorporate in Texas and be rebranded as NYSE Texas. This change offers companies another option for listing their stocks in a business-friendly environment.
Lynn Martin, the president of NYSE Group, highlighted Texas's prominent role in the market, noting that the state boasts the largest number of NYSE listings, with a market value exceeding $3.7 trillion. NYSE, a part of Intercontinental Exchange, had previously acquired the Chicago Stock Exchange in 2018.
Interestingly, this move comes amid the emergence of a new competitor. Last month, TXSE Group filed for registration of the Texas Stock Exchange with the SEC, raising $161 million and aiming to launch trading by early 2026.
Governor Greg Abbott mentioned to CNBC last year that the motivation behind having a Texas-based exchange partly stemmed from concerns over ESG rules. Texas, along with other states, has been pushing back against these Wall Street regulations.
Abbott emphasized the importance of ensuring that Texas companies aren't cut off from capital markets due to policy decisions made in New York. As a result, Texas is also challenging Delaware as the legal home for major corporations. For example, Tesla made the move to reincorporate in Texas last year after a legal battle in Delaware over CEO Elon Musk's compensation. Recently, The Wall Street Journal reported that Meta Platforms might be considering a similar transition.
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