TRANSCRIPT
Out East: Tokyo stock exchange, recovering from their network collapse, losing a day's trading while over at NASDAQ, they're saying, for trading: go West.
My name is Patrick L. Young. Welcome to the bourse business, weekly digest. It's the Exchange Invest Weekly Podcast.
Good day, ladies and gentlemen, this is a very brief reduction of highlights amongst the key headlines from the week in market structure. All the analysis of the weeks, many events and happenings can be found in Exchange Invest’s daily subscriber newsletter: the unique guide to the bourse business, sent daily to your inbox. More details for subscriptions and a free trial at ExchangeInvest.com.
The Jersey tax spat exploded this one week, amongst all manner of threats that they were on their way to Chicago... The media was excited and intrigued at that Midwestern move.
...Whereas in reality, the truth came out later in the week:”Go West!” say NASDAQ; they're in talks with Texas Governor Abbott about relocating their trading systems in a mega move, to the Dallas Fort Worth area. As I noted when this whole farago first started, the rich opportunity for NASDAQ and US trading venues is to go West far, far West, from New Jersey in the Tristate area.
Find a stable, low tax environment. Tick, Texas maintain a 0% state income tax affirmed indeed by a referendum last year, they have a proven business environment and indeed ‘Bob may be your father's brother subject only to the usual statements of gender recognition, gender determination, equal relationship status, and so forth.’
I'm delighted to hear NASDAQ are examining their options, as doubtless are other venues with a view to a next gen situation, which will clearly diminish the New York area’s financial center status. And that all comes at a time when I hear talk of new International Financial Centers in many locales, including perhaps not that far from NASDAQ's current center of attention, according to this week's reports.
Meanwhile, the mot juste of the week comes from NASDAQ's communications, VP, Joe, Christinat: Referring to NASDAQ:
“We are assessing all our options, but our number one priority is protecting the U S capital markets and its investors.”
Amen to tha:t go West the Tristate may yet remove the current tax threat, but their fiscal base is already eroding. It's only a matter of time before they return to any tax they possibly can. The same goes for Illinois. Hence the message of the week is: “Go West!” ...and indeed Charles Schwab: They're on the verge of completing their TD Ameritrade acquisition and it's time for them to Chuck the West coast too... another heaven of bankrupt us state government, Charles Schwab expects Westlake in Texas to become their official corporate headquarters address from January the first 2021.
In other bad news for New York, Thomson Reuters, they're looking to sell their 50% stake in their Times Square headquarters at the epicenter of New York's Manhattan district. It's not so long ago that Reuters was moving that headquarters to be in New York City from London, as that seemed to be the epicenter of the world, then.
Of course, it worked for the then CEO and his acolytes, I suppose. But now that dream appears to be dying along, sadly with a great city, which is in real difficulty, after an absence of budgetary coherence, even before COVID hit the city hard.
