Nasdaq will mark the full operational launch of its Texas exchange at the close of trading on Thursday, the company said, following U.S. regulatory approval of its listing rules. The exchange operator first announced the Texas venue last year as part of a strategy to strengthen its footprint in a state that the company views as an increasingly significant financial hub.
With the listing rules now approved, Nasdaq Texas has become fully operational as a dual-listing exchange and is legally domiciled in the state, a structural change Nasdaq described as permanent. The launch provides U.S. public companies an onshore Texas alternative for listing, allowing issuers to take advantage of factors the company highlighted as business-friendly attributes of the state - including a favorable tax climate, lower costs of living and reduced energy costs.
Rachel Racz, senior vice president and head of Listings for Texas, Central and Southern U.S., and Latin America, framed the move as a long-term commitment: "The full launch of Nasdaq Texas represents a permanent, foundational commitment to the companies that want to build the future of the U.S. economy from this state," she said.
A number of companies are anticipated to hold dual listings with the new exchange. The firms specifically named by Nasdaq as expected to have dual listings include APA Corporation, J.B. Hunt Transportation and Huntington Bancshares, alongside the Nasdaq exchange itself.
Nasdaq’s Texas listing is also presented as a competitive response to other exchange efforts in the state. The New York Stock Exchange committed last year to establish an exchange presence in Texas, and the Texas Stock Exchange (TXSE) - a venture backed by BlackRock and Citadel Securities - secured U.S. Securities and Exchange Commission approval in September to operate as a national securities exchange based in Dallas.
By creating a fully operational, Texas-domiciled dual-listing venue, Nasdaq aims to offer an additional listing path for companies choosing their listing location while entering a marketplace that now includes multiple exchange initiatives targeting the same state.
Sectors affected: Financial exchanges, public companies and corporate listings; named companies include energy and transportation firms and regional banking institutions.