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DALLAS — Wall Street has long been the undisputed home of American finance. Now, one southern state wants a seat at the table.
The Texas Stock Exchange is at the center of an ambitious effort to transform the Lone Star State into America’s next financial powerhouse, challenging the long-standing dominance of the New York Stock Exchange and Nasdaq while fueling the rise of what’s become affectionately known as “Y’all Street.”
The Dallas-based exchange plans to provide companies with another venue to list their shares and raise capital, with supporters betting it will help establish Texas as America’s next financial frontier.
ONE SOUTHERN STATE’S RISE IS MAKING IT AMERICA’S NEW ‘ECONOMIC CENTER OF GRAVITY’
Texas has attracted a wave of corporate relocations and business investment in recent years, helping fuel its emergence as a growing financial hub. (Shelby Tauber/The Washington Post/Getty Images)
Former Rep. Jeb Hensarling, R-Texas, a strategic advisor and member of the Texas Stock Exchange, believes the shift is already underway.
“Texas is really becoming the economic center of gravity in America,” Hensarling told Digital during an interview at the Texas Stock Exchange’s headquarters.
“As New York is increasingly shoving capital out, Texas is saying, ‘You’re welcome here,'” he said. “We put out the welcome mat, whereas New York, capital isn’t really made to feel at home, and capital wants to go where it’s made to feel at home.”
Hensarling argued that years of pro-business policies have helped transform Texas into more than just an attractive place to operate a company.
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The Texas Stock Exchange is headquartered in Dallas and aims to compete with the New York Stock Exchange and Nasdaq. (Al Drago/Bloomberg/Getty Images)
“Texas has been a great place to do business for decades, but increasingly it’s a great place to headquarter your business,” he said. “Over the last couple of legislative sessions, because of laws passed, it’s a great place to incorporate your business.”
“The last piece of that puzzle was the Texas Stock Exchange,” Hensarling said. “It’s now making Texas the best place to list your company and to go public.”
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The Texas Stock Exchange has already announced primary listings from companies including Energy Transfer, Dillard’s, Sunoco and Texas Capital Bank. (Al Drago/Bloomberg/Getty Images)
The exchange is part of a broader wave of investment flowing into Texas. In recent years, major corporations have moved their headquarters to the state, while financial giants including Goldman Sachs, JPMorgan Chase, Charles Schwab and Bank of America have expanded their Texas operations.
Supporters say those moves reflect a larger migration of businesses and capital away from traditional financial centers toward states with lower taxes and lighter regulation.
Critics, however, note that New York remains the country’s dominant financial hub by a wide margin, with the world’s largest stock exchange, major investment banks and deep capital markets.
THIS STATE ISN’T JUST GROWING — ITS ECONOMY IS GETTING RICHER PER RESIDENT
Supporters have dubbed Dallas “Y’all Street” as Texas pushes to become a larger player in American finance with a new stock exchange and a growing concentration of financial firms. (Al Drago/Bloomberg/Getty Images)
Whether “Y’all Street” can truly rival Wall Street remains an open question.
But with a new stock exchange, an influx of corporate headquarters and some of the nation’s biggest financial firms expanding in Dallas, Texas is making its boldest bid yet to challenge Wall Street’s dominance.
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Hensarling believes the trajectory is clear.
“Texas is really becoming the economic center of gravity in America,” he said.
