Texas is challenging the financial dominance of Delaware and New York through new regulations and tax policies. Jim Lee, the founder of the Texas Stock Exchange (TXSE), said that the pro-business law signed by Governor Abbott and the proposed ban on the securities transaction tax would attract businesses to move in. The exchange has received support from BlackRock, Citadel Securities, etc. It is currently awaiting approval from the US securities regulatory agency, plans to start trading early next year, and will set up a permanent office in Dallas.
Facing competition, the New York Stock Exchange and Nasdaq have announced the expansion of their business in Dallas. Li said this move was an endorsement of the Texas market, but emphasized that TXSE would focus on reducing listing costs to provide a more stable environment for enterprises in the southeastern United States. Texas has also attracted companies like Tesla to move their registration out of Delaware by establishing a commercial court system.
The new policy in Texas includes a ban on the securities transaction tax, in contrast to the proposal in New York State that might restore the stock sales tax. Li said that any measure to increase transaction costs on the east Coast would benefit Texas. Despite competition from industry giants, TXSE still plans to reshape the landscape of the US capital market through predictable regulation and low-cost services.
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