The Lone Star Stock Exchange

The opening of a new securities exchange in Texas signals the rising economic threat to New York’s economy from the Empire State’s slide toward socialism. Top firms like BlackRock, Citadel Securities, Goldman Sachs, Charles Schwab, and Fortress Investment Group are among the backers of the Dallas-based Texas Stock Exchange. The bourse on Friday began operations amid a larger shift of the financial center of gravity in the direction of the Lone Star State.It’s not our desire here to overstate the implications, so far, of the new stock mart at Dallas. After all, the exchange as yet lacks for company listings. The Texas exchange’s organizers are looking to line up companies to move their business to Dallas from existing exchanges like, say, the New York Stock Exchange or Nasdaq. Texas looks to bring in business, too, from London. “The proof is going to be in the movement of companies,” TXSE’s James Lee vows.It’s early yet, though. TXSE has commenced “a phased rollout of national market system symbols until all symbols are available to trade” on the exchange by the end of July, the Dallas Morning News reports. Exchange-Traded Funds are slated to begin trading during the third quarter, with “corporate listings in the fourth and finally initial public offerings of companies entering the market for the first time in 2027,” the News adds. The Dallas exchange’s backers eye the prospect of capturing IPOs on a par with that of SpaceX, which raised, via Nasdaq, some $86 billion. That was the world’s largest IPO to date, but AI firms like Anthropic and OpenAI “could go public in a matter of months,” the Wall Street Journal reports, posing tantalizing prospects for TXSE. “It’s a gold rush,” per the Journal, “and Texas dreams of a land grab from the duopoly of the NYSE and Nasdaq.”Plus, too, the Lone Star stock exchange speaks to the rise of Texas as a financial hub — in part at the expense of Wall Street. New York’s status as a financial capital is increasingly encumbered by the high taxes, proliferating regulations, and downright hostility to capitalism of state and city Democrats. “People think that somehow being anti-business is going to help the city — it’s not,” is how the chairman of JPMorgan Chase, Jamie Dimon, recently put it. Mr. Dimon, these columns reported in May, has been “urging Mayor Zohran Mamdani to rethink his tax-the-rich crusade to avoid an economic calamity for New York City.” The progress being made by rival states like, say, Texas only underscores Mr. Dimon’s concerns. Feature, say, Goldman Sachs, which is setting up at Dallas a campus that will serve as its second-largest American office, with room for some 5,000 staff. Morgan Stanley, too, is weighing a new hub at Dallas, Bloomberg reports, at a $1.3 billion tower that would consolidate its operations there. The move could bring another 5,000 jobs to the center, rivaling Wall Street. It is being nicknamed Y’all Street. Bank of America, too, plans to anchor an office tower at Dallas. With a Marxist like Mr. Mamdani threatening to “tax the rich,” it’s no wonder businesses — and residents — are looking for alternatives. Hostility to free enterprise is not confined to New York. Seattle’s mayor, Katie Wilson, is another leftist who takes her city’s prosperity for granted as she eyes higher taxes. “I think the claims that millionaires are going to leave our state are, like, super overblown,” she said. “And if — the ones that leave, like, bye.” Texas seems to grasp the insight of Citicorp’s Walter Wriston: “capital goes where it is welcome and stays where it is well treated.”

The Lone Star Stock Exchange

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