NYSE/ICE is reincorporating NYSE Chicago in the Lone Star State, home to more NYSE-listed companies than any other U.S. state.
Grygo is the chief content officer for FTF & FTF News.
Officials at the New York Stock Exchange (NYSE) recently announced that they plan to launch NYSE Texas, an electronic equities exchange, in Dallas, Texas by reincorporating, moving, and renaming NYSE Chicago. NYSE is part of Intercontinental Exchange, Inc. (ICE). (NYSE Chicago is the rebranding of the venerable Chicago Stock Exchange.)
NYSE/ICE officials appear to be saying that they want to be where the action is, and, for now, that is the Lone Star State where the securities industry could see growing competition for exchange companies.
“Pending the effectiveness of regulatory filings, NYSE Chicago will reincorporate in Texas and be renamed NYSE Texas, offering companies the opportunity to list their securities on NYSE Texas,” according to the announcement.
Founded in 1882, the Chicago Stock Exchange was purchased by ICE in 2018 and renamed NYSE Chicago in 2019. The rebranding reflected some key modernization efforts such as the usage of the NYSE Pillar order entry/market data protocols and order types. “With the successful migration of NYSE Chicago to NYSE Pillar, member firms can now connect to all of our equities markets using a single specification,” according to the NYSE Chicago website.
“As the state with the largest number of NYSE listings, representing over $3.7 trillion in market value for our community, Texas is a market leader in fostering a pro-business atmosphere,” says Lynn Martin, the president of NYSE Group, in a prepared statement. “We are delighted to expand our presence in the Lone Star State, which plays a key role in driving our U.S. economy forward.”
The launch of NYSE Texas “will provide public companies with a listing and trading venue centered within the vibrant economy of the southwestern U.S.,” according to the announcement. “With this launch, NYSE Texas will deliver a listing exchange to companies incorporated both in Texas and around the world that are attracted to Texas’ growing population, strong economy, and business-friendly regulatory agenda. The NYSE plans to make regulatory and corporate filings to effect the reincorporation in the near term.”
It’s hard not to wonder if the center of gravity for global markets is shifting away ever so slightly from New York’s Wall Street. The exchange infrastructure technology and networking exist to make trading achievable from anywhere and practically around the clock. I suspect that all those humans and all that history that each exchange company represents could lead to new competition among the established exchanges and startups.
It could lead to an era of new rules, efficient disruptions, and new competition that results in more choices for investors when they venture into new markets.
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