Texas’ rise as a center of business activity is well-documented. Over the past decade, companies across industries have expanded their presence in the state, drawn by its scale, talent base, and operating environment.
Rachel Racz, President of Nasdaq Texas, puts it in global terms: “If Texas were its own country, it would be the eighth-largest economy in the world. This isn’t a regional story. It’s a global one.”
The term “Y’all Street,” surfaced in discussions about Texas’ role in finance, is the descriptor of an emerging ecosystem where issuers, investors, banks, exchanges, and service providers increasingly operate in the same environment.
Goldman Sachs is constructing a new Texas campus designed to house thousands of employees. JPMorgan Chase now employs more people in Texas than in New York. Wells Fargo, Bank of America, and Charles Schwab have all deepened their footprint in the Lone Star State. These are not satellite offices. They are strategic anchors.
“Nasdaq has the opportunity to experience in a very deep, profound way markets and economies all over the world,” says Ed Knight, Executive Vice Chairman of Nasdaq. “And the uniqueness and the dynamism of the Texas economy is unequaled. The U.S. economy is the dominant economy in the world, and Texas is the dominant part of that economy.”
“What we’re seeing is the formation of a full financial ecosystem,” Knight says. “It’s being built by companies that intend to be public, lasting, and globally relevant. The infrastructure is evolving alongside them. Markets are a living thing.”
Corporate banking, equity capital markets, advisory services, and investor engagement are increasingly co-locating with the companies they serve. Legal advisors, auditors, and governance specialists are expanding in lockstep. As companies grow, proximity to capital becomes a strategic advantage. In Texas, that proximity now extends across the full capital lifecycle.
“The closer participants are to one another, the more efficient the system becomes,” Knight explains. “You reduce friction across the lifecycle and create conditions where capital can move with greater clarity.”
This is reinforced by the governance framework — stronger protections under the business judgment rule, higher thresholds for derivative actions, and the ability for companies to set clearer terms for shareholder proposals. These are signals to operators and investors alike: Texas is a place where the rules are clear, durable, and oriented toward long-term value creation.
“This isn’t about geography,” Racz says. “It’s about certainty and confidence. Companies are seeking governance structures that reflect their priorities. They want markets that respect their operational realities.”
Where Nasdaq Texas Fits
Nasdaq’s decision to deepen its presence in Texas reflects the same dynamic it observes in its clients. Over the past several years, the exchange has expanded its footprint in the state by supporting legislative reform, reincorporating its exchanges in Texas, and planning a regional headquarters in Dallas.
At its core, Nasdaq Texas is Nasdaq with boots on the ground. It allows companies to establish a capital markets presence in Texas while maintaining full access to Nasdaq’s global liquidity, investor base, and technology. What shifts is alignment and connecting where companies operate, how they are governed, and how they access capital.
“Our roster of Texas-based companies is growing every day,” Knight says. “And part of it is the success in convincing the Texas business community that we’re serious about this — that we have shaped a market to meet their needs, and we’re going to continue to work hard to solve their problems.”
“Our role is to meet them where they are,” he adds. “We are aligned culturally with the economics of this state and the business culture of this state. And one way of signaling that partnership is by investing in and starting a stock exchange here.”
Adds Racz, “This isn’t just an exchange. It’s a movement. What we’re building here is designed to help Texas grow from a top-eight economy into a top-five economy, and capital markets infrastructure is essential to that.”
Established financial centers will remain essential to the global system. But new centers of activity are emerging, shaped by where companies choose to build and grow. Texas is one of those centers — built through sustained alignment across business growth, governance clarity, financial infrastructure, and market access.
“The long-term story is about where companies decide to anchor their future,” Knight says. “In Texas, we’re seeing more of them make that decision, and capital is following.”
Frequently Asked Questions
1. How large is the Texas economy and why does it matter for capital markets?
If Texas were a sovereign nation, it would rank as the eighth-largest economy in the world. The state leads the nation in exports, corporate relocations, and sustained job creation. This concentration of economic activity, combined with the co-location of major financial institutions (Goldman Sachs, JPMorgan, Schwab, Wells Fargo, Bank of America), creates the demand and infrastructure necessary for a regional capital markets center.
2. What is Y’all Street?
“Y’all Street” describes the emerging financial ecosystem in Texas where issuers, investors, banks, exchanges, advisory firms, and service providers increasingly operate in the same environment. It is not positioned as a replacement for existing financial centers like New York, but as a new center of gravity shaped by where companies are choosing to build, incorporate, and grow. The term captures the concentration of capital markets activity now forming across Dallas, Houston, Austin, and San Antonio.
3. How does public market health connect to state fiscal policy?
A vibrant public equity market allows citizens to build wealth through investment, which reduces long-term demand on government programs like subsidized healthcare and retirement. The U.S. currently has roughly the same number of public companies as it did 20 years ago, limiting public access to equity growth. Texas’ legislative efforts to reduce friction for public companies — combined with Nasdaq’s capital markets infrastructure — are designed to encourage more companies to go and stay public, which strengthens both investor wealth and state fiscal sustainability over time.