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Texas has in recent years become a significant home for companies looking to relocate, including the latest — the New York Stock Exchange’s “fully electronic equities change” NYSE Texas in Dallas.
The NYSE revealed Wednesday that it plans to add operations in Dallas by reincorporating its NYSE Chicago as NYSE Texas in the Lone Star State, saying the “fully electronic equities exchange” will “provide public companies with a listing and trading venue centered within the vibrant economy of the southwestern U.S.” once it goes live in the future.
NYSE Group President Lynn Martin said the exchange is “delighted to expand our presence in the Lone Star State,” touting Texas as the state “with the largest number of NYSE listings” and a “market leader in fostering a pro-business atmosphere.”
Traders work on the floor of the New York Stock Exchange November 28, 2011. REUTERS/Brendan McDermid (UNITED STATES – Tags: BUSINESS) ( REUTERS/Brendan McDermid / Reuters Photos)
NEW YORK STOCK EXCHANGE PLANS EXCHANGE IN ‘PRO-BUSINESS’ TEXAS
A report released last year by the Federal Reserve Bank for Dallas found a net of over 7,300 firms moved into Texas between 2010 and 2019, putting it among the top states for business relocations.
The state has notched more firms moving into it than out of it since 2000, the report also said.
University of Texas at Dallas Accounting Assistant Professor Kirti Sinha told FOX Business said “several factors” have drawn companies to the Lone Star State.
“The first is, of course, the taxes. There is no personal income tax and corporate income taxes in Texas in general,” she said. “Then, second, I think our regulatory environment is, I would say, much more relaxed compared to some other states.”
“We have lower disclosure or regulatory oversight compared to other states, and I think also the way, for example, the governor has been signalling ‘come here, make this your home, and I’m here for you,’ those kind of give signal to companies that whatever the situation in terms of regulations right now, it’s going to stay like this in the future,” Sinha added. “That kind of gives them confidence.”
A Texas flag and American flag flown together on a building in Austin, Texas, March 11, 2023. (Photo by Smith Collection/Gado/Getty Images) (Smith Collection/Gado/Getty Images / Getty Images)
The space that Texas has for manufacturing facilities and warehouses and its wage rates have also appealed to businesses, according to Sinha.
“Texas has been working for decades to establish itself as the best place in America to do business. With one of the fastest-growing populations in the country, the highest number of Tier 1 research universities of any state in the country, and a business and regulatory environment that make it easy for companies to succeed, Texas is unmatched as a place to do business,” Nate Sharp, the dean of the Mays Business School at Texas A&M, told FOX Business.
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Among some of the big-name companies that moved their headquarters to Texas in recent years are Tesla, Fisher Investments and Hewlett Packard Enterprise.
Fisher Investments announced its move to the Lone Star State in 2023. The relocation was prompted by the Washington State Supreme Court upholding the state’s capital gains tax.
Hewlett Packard Enterprises in 2020 pointed to “opportunities for cost savings, and team members’ preferences about the future for work” for its own move to Texas.
In a more recent example, energy giant Chevron said in fall 2024 that it would be moving its headquarters to Texas from California. Andy Walz, Chevron’s president of America products, said California being a “tough place” to do business and “recruit people” played a part in its relocation decision, as well as the company looking to “drive better business outcomes.”
Sharp said the launch of NYSE Texas “will accelerate the growth of business” in the state and make it “even more attractive.”
Skyline of downtown Dallas, TX on a partly cloudy day. (Photo by: HUM Images/Universal Images Group via Getty Images) (HUM Images/Universal Images Group via Getty Images / Getty Images)
Nasdaq, another major stock exchange, also has a presence in Texas, and the TXSE Group is working to set up the Texas Stock Exchange in the state as well, filing its Form 1 registration with the Securities and Exchange Commission late last month.
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“The whole listing process has become very complicated over the years, and having a physical office helps them talk to these companies more directly and gives them direct access,” Sinha told FOX Business.
She also said exchanges being in Texas “gives signals to investors that they can trust the system here, and so I think it is a very self-fulfilling kind of cycle, like ‘oh so the companies were coming, the New York Stock Exchange came’ and then that will bring in more investors and more companies.”
