Nasdaq announces Texas-based exchange
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Y'all Street is getting bigger. Nasdaq plans to open a Texas-based exchange in Dallas next year, making it the third stock exchange to be based in the city.
Driving the news: Nasdaq officials unveiled Nasdaq Texas at a barbecue cookoff in the Permian Basin this week, highlighting the impact of the state's oil and gas industry on the economy.
The big picture: Stock exchanges are all the rage in Dallas.
- Mayor Eric Johnson delivered his state of the city address from the Texas Stock Exchange's temporary headquarters yesterday.
- The Texas Stock Exchange raised more than $250 million in capital in its second round of funding and plans to start trading next year.
The latest: Nasdaq Texas, pending federal approval, is part of a larger effort to consolidate all of Nasdaq's Texas-based employees into one Dallas office.
- Nasdaq has over 800 clients in Texas. Over 200 companies based in the state have listings on the exchange.
How it works: Companies typically dual list on stock exchanges to boost their brand recognition.
- Nasdaq plans to reincorporate one of its existing exchanges into Nasdaq Texas, similar to how New York Stock Exchange moved its Chicago exchange to Dallas.
- Companies incorporated in Texas will be able to dual list on a primary exchange and Nasdaq Texas.
What they're saying: Companies are drawn to the state because of its pro-business policies, Rachel Racz, who oversees Nasdaq's listings in Texas, the Southern U.S. and Latin America, said in a Q&A.
- "There's no single industry in Texas anymore. It's so diversified," Racz says.
Editor's note: This story has been corrected to say the Texas Stock Exchange (not NYSE Texas) recently raised $250 million.