Nasdaq, long associated with its prime Times Square location, will soon be opening its first regional headquarters in Dallas, according to people familiar with the plans. It’s the latest push by a New York institution into Texas, which is trying to unseat the Northeast as the epicenter of U.S. business.

The details

The stock exchange operator is establishing a regional headquarters later this year in Dallas, the seat of so-called Y’all Street, serving Texas and the entire Southeast. The focus of the office won’t be solely on winning listings (often viewed as the prestige business of a stock exchange), according to people familiar with the matter. It will also house part of Nasdaq’s technology and financial crime management businesses, which help Nasdaq clients detect fraud and money laundering.

Nasdaq was founded in 1971 and established stature during the tech boom of the late 1990s and early 2000s. Though Silicon Valley is a thriving pipeline for its listing business, the exchange never opened a headquarters in California. The company does have an office and events space in San Francisco.

Nasdaq has more than 200 listed companies based in Texas, where it has had a physical presence since 2013. The regional office will expand the company’s footprint in the state.

Nasdaq was founded in 1971 and established stature during the tech boom of the late 1990s and early 2000s. PHOTO: ED BAILEY/ASSOCIATED PRESS

The context

Making a big investment in the Lone Star state is becoming a trend among financial institutions. 

Earlier this year, the startup Texas Stock Exchange filed paperwork in hopes of gaining regulatory approval to start trading and listing companies next year. The New York Stock Exchange said in February that it will launch an electronic exchange in the state.

Last year, the state established the Texas Business Courts specializing in corporate matters as an alternative to the Delaware Court of Chancery system. And earlier this year, legislators in the Texas Senate proposed bills to entice companies to reincorporate in the state.

President Trump’s “first buddy” Elon Musk is a proponent of Texas, having moved much of his business empire there and encouraging others to do so as well. Mark Zuckerberg’s Meta may move its incorporation there from Delaware, which would mark a new feather in Texas’ Stetson.