Last week, the Wall Street Journal broke news that has since become the talk of the financial services world: Texas will soon be home to the nation’s newest stock exchange – the Texas Stock Exchange (TXSE). Backed by a group of investors who have raised $120 million for a new electronic trading platform, this was welcome – but not surprising – news for those of us who have long recognized that Texas is becoming a financial services powerhouse.
“With Texas, we are now the epicenter in the United States for capital, and now we seek to expand that by becoming the epicenter for capital markets,” Governor Abbott told Sunday Morning Futures following last week’s announcement.
The Texas Association of Business (TAB) supports the forthcoming establishment of the Texas Stock Exchange (TXSE), headquartered in Dallas, a region that has led the nation in financial services job growth since 2019.
This groundbreaking development not only cements Texas' status as a leading hub for business and innovation, but also adds gravity to Texas’ stature in a universe previously dominated by New York. Positioned in a prime locale for a competitive stock exchange, the TXSE will bring competition and innovation to the industry.
As business leaders have observed, the establishment of TXSE in Dallas will have follow-on effects for Texas’ overall business growth.
Adam Gersting, Managing Partner at West Monroe’s Dallas office noted that: “Having the exchange here will add a level of prominence to the capital market segment in view and to the business environment overall. That may draw more businesses here and may provide avenues for greater growth through public investment, for example, in businesses that are here.”
Longtime Dallas business titan Mark Cuban hailed the establishment of TXSE after last week’s announcement:
“I think it’s an amazing and smart idea. It would be great for Dallas. Not just the jobs, but the improvement on digital infrastructure required, the focus on Dallas-based companies it would bring, and maybe most importantly, it would be a foundation for people to get a better financial education. It would certainly be a place schools took kids, even if it’s mostly just servers. I’m a huge fan of the concept.”
TXSE founder and chief executive James Lee made clear that the establishment of the exchange is well-timed to build on the momentum of “Texas’s booming economy and the strong economic and population growth among states in the southeast quadrant of the U.S.,” emphasizing that “Dallas has become one of, if not the most, dominant financial centers in the country, if not the world.”
Looking at the bigger picture, the creation of the TXSE is yet another testament to the importance of robust pro-business policies that have rendered Texas the ideal home for corporations poised for more growth and success.
Businesses of all sizes have consistently flocked to the Lone Star State, with a total of 297 headquarter relocations occurring since 2015. With 52 Fortune 500 companies already headquartered here, our state has earned a reputation for being the ‘headquarters of headquarters.’ CEOs perennially recognize Texas as the Best State for Business, and Site Selection magazine has for twelve straight years ranked Texas as the top state for new capital investment projects.
While other states burden businesses with punitive taxes and regulations, Texas remains steadfast in its commitment to promoting economic growth and improving our business climate. Texas last year passed legislation to establish specialized business courts comprised of Governor-appointed individuals with 10+ years of experience practicing business transaction law or complex civil business litigation. Contrast Texas’ clear commitment to a better business climate with New York's proposed state tax on stock transfers—to which the Wall Street Journal editorial board responded:
“Go ahead, make the Texas exchange’s day.”
The establishment of the TXSE is the latest in a long string of new Texas business endeavors underscoring that policy matters for job creators and investors, and that capital goes where it is treated well. As we approach the launch of this transformative enterprise, TAB stands ready to support ongoing efforts to further solidify Texas’ position as a global leader in financial services.
###
Commenti