Gov. Greg Abbott will welcome representatives from major stock exchanges, including Nasdaq, to Austin on Nov. 20.
According to a report by The Dallas Morning News, the meeting is part of Texas’s bid to be the top choice if the exchanges make good on their threats to move their trading platforms out of New Jersey.
Last month, the Dallas Morning News reported that Gov. Abbott’s office was in talks with Nasdaq and other exchanges about moving data centers, which power billions of dollars in trades on Wall Street each day, to Dallas.
“Texas continues to be the premier economic destination in the country, attracting more leading businesses than any other state,” spokeswoman Renae Eze told the Dallas Morning News. “The governor looks forward to meeting with Nasdaq and showcasing Texas’ business-friendly environment, skilled workforce, robust infrastructure, and low taxes, all of which foster greater economic growth in the Lone Star State.”
The group meeting with Abbott calls itself the Coalition To Prevent the Taxing of Retirement Savings, two sources familiar with the discussions told the Dallas Morning News.
The coalition includes Nasdaq, CBOE Global Markets, Citadel Securities, data center operator Equinix, IEX, Members Exchange, New York Stock Exchange owner Intercontinental Exchange, TD Ameritrade Holding Corp., Virtu Financial and UBS.
Texas was the first of several states to reach out to the coalition to express interest in housing the exchange data centers, the Dallas Morning News reported. Virginia, North Carolina and Illinois have also reportedly had discussions with Nasdaq.
According to the Dallas Morning News, the coalition’s desire to move out of New Jersey is being driven by a potential tax on financial transactions in the state.
The proposed tax would charge a quarter of a cent per “financial transaction” at entities in New Jersey that process at least 10,000 transactions annually via electronic infrastructure, the Dallas Morning News reported. That tax would generate an estimated $10 billion annually for the state.
The Dallas Morning News reported that if the exchanges choose to move to North Texas, it would signal a move away from Wall Street’s reliance on the East Coast and bolster the North Texas’s burgeoning financial services sector.
The move would also benefit the growing data center industry in North Texas, the Dallas Morning News reported.