Texas Stock Exchange Opens as Finance Firms Flee High-Tax States

The Texas Stock Exchange began trading last month, a milestone that crystallizes a years-long shift in where financial services firms plant their flags. The exchange, approved by the SEC as a national exchange in 2025, counts Goldman Sachs, Citadel, Charles Schwab, and JPMorgan among its backers. Public listings and IPOs are expected to ramp up through 2027.

The TXSE launch is emblematic of a broader migration pattern. IRS data shows Texas generated the most inbound interstate migration of any state between 2022 and 2023. California and New York, by contrast, ranked last. A recent ranking of state tax burdens put Texas first for individual taxation. New York placed dead last, followed by California.

Charles Schwab made the most dramatic move among the exchange's backers. The company exited San Francisco entirely to establish its corporate headquarters in the Dallas-Fort Worth region. Goldman Sachs is building a campus there targeting 5,000 employees. JPMorgan now bases more employees in the region than at its corporate home in New York City.

The Dallas-Fort Worth area has attracted more than 300 financial companies, according to Gloria Salinas, senior vice president and chief growth officer of the Frisco Economic Development Corporation. Frisco sits within the region and claims access to more than 250,000 business and financial professionals within a 30-minute commute. Another 15 million square feet of office space is coming online in the next 15 years.

"We're seeing a fundamental shift in where financial services companies want to grow," Salinas said. "North Texas has become one of the country's leading destinations for corporate investment. Frisco stands out because it offers the combination companies are looking for: talent, infrastructure and room to scale."

Salinas pushed back on the idea that tax policy alone drives the migration. "Taxes matter, they're rarely the deciding factor. Talent is," she said. "Companies ultimately follow people."

The region's growth spans payments, financial technology platforms, and banking services. Frisco has attracted firms from established institutions like TIAA to high-growth names like SoFi and Payrix, which Fidelity acquired for nearly $777 million in 2021.

Salinas said early-stage and growth-stage companies increasingly want to be part of ecosystems where they can access both customers and talent. "Frisco's position within North Texas makes it particularly attractive for firms operating at the intersection of finance and technology."

She acknowledged New York will remain a global financial center. "I don't think Wall Street can simply vanish," she said. "What's changing is that companies today have more choices than ever before."

Over the next several years, Salinas expects more firms will establish headquarters and corporate innovation center operations in the region across financial services, fintech, cybersecurity, and adjacent industries. "Rather than treating Texas simply as a satellite office location."

For Schwab, the move to Texas came after the company's GS stock page backer Goldman Sachs and others had already committed to the region. Schwab's own stock page shows an Alpha Score of 67, labeled Moderate, reflecting the broader Financials sector's positioning during the migration.

Salinas said the future of financial services won't belong to one city. "It will be shaped by multiple world-class hubs, and Frisco intends to be one of them."