The New York Stock Exchange is launching an exchange in Texas

The New York Stock Exchange (NYSE) is expanding to Texas to meet the needs of companies drawn to the state’s pro-business environment.

The NYSE announced Wednesday that its electronic exchange, NYSE Chicago, will reincorporate in Texas and be renamed NYSE Texas, giving companies the option to list their stocks in the Lone Star State.

“With Texas boasting the largest number of NYSE-listed companies, representing over $3.7 trillion in market value, it’s a leader in fostering a business-friendly climate,” said Lynn Martin, president of NYSE Group, in a statement.

The NYSE is part of Intercontinental Exchange (ICE), which acquired the former Chicago Stock Exchange in 2018 and rebranded it as NYSE Chicago.

This move comes as Texas prepares for a potential new competitor. Last month, TXSE Group filed for registration of the Texas Stock Exchange with the Securities and Exchange Commission (SEC). The company has reportedly raised $161 million and plans to launch trading operations in early 2026.

Texas Governor Greg Abbott previously told CNBC that concerns over environmental, social, and governance (ESG) policies motivated the push for a Texas-based exchange. Texas is among several states opposing ESG mandates from Wall Street firms.

“We need to ensure that Texas companies aren’t cut off from capital markets because of policy decisions made in places like New York,” Abbott said.

Texas is also becoming a rival to Delaware as a legal home for major corporations. Tesla reincorporated in Texas last year following a legal dispute in Delaware over a compensation package for CEO Elon Musk. The Wall Street Journal recently reported that Meta Platforms is considering a similar move.