The economic future of Texas is going to reach new heights within the next few years. In the past, Texas has been a financial capital, boasting the second largest economy in the United States after California, and the eighth biggest in the entire world, with a $2.6 trillion GDP as of 2024.1 Companies left and right are moving to the Lone Star State because of its business-friendly regulatory laws and low taxes.
Come and Trade It!
In early 2026, a new stock exchange will launch in Dallas — the Texas Stock Exchange LLC (TXSE).2 This is potentially revolutionary for the state of Texas, as it enters the trading market, up against the powerhouses of the renowned New York Stock Exchange (NYSE) and National Association of Securities Dealers Automated Quotations (NASDAQ), among other smaller American stock exchanges. Many have tried to compete with these organizations and have failed. The TXSE sets itself apart because it's the first ever stock exchange organization to raise an initial capital investment of $161 million.3 These fundraising efforts show that investors believe in its mission and chance of prosperity.
NYSE-Chicago to Reincorporate in Texas
The TXSE will not be without competition within the state. The NYSE announced on February, 12, 2025, it will move its NYSE Chicago branch to reincorporate in Texas.4 Without wasting any time and aiming to make a significant impact before the TXSE, which is currently awaiting approval from the SEC, the NYSE Texas officially commenced operations on March 31, 2025.5
It makes logical sense why these exchanges want to establish themselves in Texas. As of 2024, Texas is home to 52 Fortune 500 companies,6 and that number is only expected to grow as companies are leaving states with high taxes and regulations that limit economic development.
But Wait, There's More
In 2023, the Texas Legislature as part of House Bill 19, pioneered the Texas Business Court system, and in September 2024, Governor Greg Abbott swore-in the newly appointed judges.7 Already a bustling business hub, this move was a bold step toward establishing Texas as a financial powerhouse that will incentivize additional companies to set up shop here. The combination of the stock exchange launches plus the business courts will elevate Texas as a business mecca of the Southeast and rival to long-term capital market centers that have maintained their superiority for decades, such as New York City, Chicago, and San Francisco – potentially creating a boom not seen since Spindletop.
What will this look like for Texas lawyers? It could mean numerous implementations such as expansions of big law or start-up firms relocating to or starting a branch in Dallas; new challenges with corporate shareholder decisions; redevelopment of real estate in the Dallas-Fort Worth area; and even city planning and regulation debates to improve public transportation and the power grid to ensure Dallas' infrastructure is fully ready for these changes. Additionally, many of the established law firms may adjust or expand their practice structures to serve these new novel areas of law in the state that may arise and the rapid influx of clients.
In light of these developments, Texas lawyers and firms will face new opportunities, but not without new obstacles that require modern remedies and adaptations.
Footnotes
- https://businessintexas.com/blog/texas-vs-california-economy-which-state-is-best-for-business/
- https://www.txse.com/press-releases/texas-stock-exchange-files-form-1-registration-to-operate-as-a-national-securities-exchange
- See id.
- https://www.reuters.com/markets/us/nyse-chicago-reincorporate-texas-2025-02-12/
- https://www.cfo.com/news/nyse-texas-launch-steals-thunder-from-txse-trial-balance/743771/
- https://www.statesman.com/story/news/state/2024/06/04/fortune-500-texas-companies-list-california-new-york-tesla-mckesson-exxon-mobil/73968165007/
- https://gov.texas.gov/news/post/governor-abbott-swears-in-texas-business-court-judges-in-fort-worth
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
