NYSE Coming to Texas as Lone Star State Continues To Attract Businesses

What happened: The New York Stock Exchange (NYSE) is establishing NYSE Texas in Dallas, further solidifying Texas’s status as a business and financial hub. Read more

Remind me: The NYSE revealed its plans to add operations in Dallas by reincorporating its NYSE Chicago as NYSE Texas, which will be a fully electronic equities exchange.

• Texas has become a top destination for corporate relocations due to the state’s business-friendly environment. Big-name companies, including Tesla and Hewlett Packard Enterprise, have already made the move.

Worth noting: Nasdaq, another major stock exchange, also has a presence in Texas, and the TXSE Group is working to set up the Texas Stock Exchange in the state as well.

• University of Texas at Dallas Accounting Assistant Professor Kirti Sinha suggested that the presence of stock exchanges in Texas will boost investor confidence and attract more companies.

TLR Thoughts: Texas’s commitment to a pro-business environment continues to attract top companies and reinforce its reputation as an economic powerhouse. However, decades of regulatory accumulation still create challenges for businesses and consumers alike. To maintain its competitive edge, Texas must continue prioritizing smart regulatory reform, business growth and a fair legal climate that protects against excessive litigation.

Florida vs. California Insurance, Round 2

What happened: California’s insurance market is collapsing due to price controls and regulatory burdens, while Florida’s legal reforms have stabilized its market and lowered insurance rates. Read more

California’s crisis: Insurance Commissioner Ricardo Lara imposed a $1 billion surcharge on insurers and policyholders to prop up the failing state-backed insurer, FAIR, which is in danger of becoming insolvent.

• Strict regulations have prevented insurers from adjusting rates for wildfire risks, leading to massive losses and a potential credit rating downgrade for State Farm, California’s largest fire insurer.

Florida’s success: Florida’s 2022-2023 litigation reforms curbed “rampant lawsuit abuse” and helped head off an insurance disaster. In fact, these tort reforms helped attract 11 new insurers to the state and shift 477,000 policies from the state-backed Citizens Property to the private market. 

• As a result, major insurers have begun lowering rates, and auto insurance premiums are also declining.

TLR Thoughts: Florida’s success highlights the benefits of state-level solutions. TLR supports maintaining state authority over insurance regulation, but that has to be coupled with a legal environment that does not reward plaintiff lawyers for pursuing meritless lawsuits that cost all Texans money through increased costs for goods and services.

Opinion: Texas Is the Fifth Most Regulated State. Lawmakers Should Fix the System

What happened: Texas is the fifth most regulated state in the nation, according to the most recent State RegData rankings. Read more

Remind me: On Dec. 4, 2024, Gov. Greg Abbott launched the Small Business Freedom Council to identify regulatory barriers for small businesses. While this is a major step toward modernizing the state’s regulatory system, the 89th Texas Legislature has an opportunity to address specific areas where change is most urgently needed.

Tell me more: Excessive regulations, particularly in occupational licensing and permitting, create unnecessary hurdles for entrepreneurs and businesses. Proposed reforms include:

• A user-friendly website consolidating all business regulations in one accessible location.
• A transparent and regular review process to ensure regulations remain effective.
• A new regulatory division to help state agencies review regulations, improve their rules and eliminate inefficiencies.

In his words: “Reforming Texas’s regulatory system is one of the most impactful steps legislators can take to improve state government and ensure Texas continues to lead the nation. By fixing outdated regulations and removing unnecessary barriers, Texas can cement our status as a dominant economic force in the U.S. and around the world.” —Judge Jeff Rose 

TLR Thoughts: Texas’s excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform. TLR will support legislation this session aimed at systematically reducing red tape and preventing future accumulation of regulations. By adopting proven strategies, Texas can stimulate substantial economic growth and solidify its reputation as a leader in pro-business governance.