The New York Stock Exchange (NYSE) will reincorporate the Chicago Stock Exchange, marking a significant shift for the company after 143 years of operations in the city. The move is intended to capture business from companies in the Southwestern United States and has been welcomed by Governor Greg Abbott, who described Texas as the “financial capital of America.”
The NYSE acquired the Chicago exchange in 2018 and rebranded it as NYSE Chicago, which operates as a fully electronic trading center. Despite its long history, the exchange’s business declined due to rapid technological changes in trading, leading to financial losses. The company received a $20 million cash infusion in 2006 but continued to struggle.
The move is part of the NYSE’s efforts to expand into new markets and increase competition with other trading venues. In 2019, a group filed for regulatory approval of a new trading venue based in Dallas, the Texas Stock Exchange. The relocation will not affect trading firms’ access to the exchange, according to the NYSE.
NYSE President Lynn Martin praised Texas’s “business-friendly regulatory agenda” and highlighted the state’s large number of NYSE listings. Governor Abbott also hailed the move as a victory for his state, describing it as an opportunity to become America’s new financial hub.
The relocation has raised concerns about job losses in Chicago, with Crain’s Chicago Business estimating that 80 jobs were involved when the NYSE acquired the exchange in 2018. ICE Chairman Jeffrey Sprecher, who will oversee the relocation, may have a personal stake in the move after his failed attempt to buy the Chicago Board of Trade in 2007.
The New York Stock Exchange is part of Atlanta-based Intercontinental Exchange (ICE), which will continue to operate a Chicago office. The company’s efforts to expand into new markets have raised questions about its future dominance in the US financial sector.
Source: https://chicago.suntimes.com/money/2025/02/13/chicago-stock-exchange-nyse-bound-texas