President Donald Trump said New York City's decision to allow the New York Stock Exchange (NYSE) to expand its computer systems in Dallas, Texas, was "a major mistake that weakens New York's competitiveness."
The New York Stock Exchange, the beating heart of New York finance, effectively moved to a dual New York-Dallas structure last March by expanding its computer systems to Dallas, the central city of Texas.
According to Reuters, President Trump said on the 18th via the social media platform Truth Social that building the New York Stock Exchange in Dallas was "an incredibly bad thing for New York." Trump said he was "appalled by the decision that allowed this situation to fester," warning that "this will be a major test for Zohran Mamdani, the New York mayor."
The controversy stems from a project the New York Stock Exchange's parent company, Intercontinental Exchange, has pursued since last year. The exchange moved the functions of its existing Chicago exchange to Texas and officially launched NYSE Texas as an electronic trading hub. Based in Dallas, the exchange is on track, attracting 10 corporations in the first quarter alone, including the large energy services corporation Halliburton and Trump Media, the Trump family's corporation.
The New York Stock Exchange said the expansion was intended to provide better service to corporations in the South and Southwest and was not meant to replace the functions of the New York headquarters. But views inside and outside the market differ. Fox Business, citing Dallas Mayor Eric Johnson, reported that "the movement of New York financial institutions to Dallas is now an inevitable trend." Mayor Johnson called Dallas a "sanctuary city safe from socialism" and argued that "New York's high taxes and regulations that choke corporate activity will accelerate the exodus of Wall Street corporations."
In fact, the movement of people and capital within the United States supports this. Over the past 10 years, more than 380,000 New York residents have moved to Florida. In the process, roughly $37 billion in taxable income flowed out of New York. Texas likewise absorbed assets worth $21 billion along with 360,000 residents who moved in from California, emerging as a new economic hub.
Experts said President Trump brought up the New York Stock Exchange to pressure Mayor Mamdani, who began a term on Jan. 1 this year. Mayor Mamdani calls himself a democratic socialist and rose to office by foregrounding working-class policies such as stabilizing housing costs. During the campaign, Trump criticized him as a communist and even mentioned cutting off federal funding. The two appeared briefly cordial after meeting at the White House right after the election, but their relationship rapidly cooled this year when, over the Venezuela situation, Mayor Mamdani called President Trump directly to lodge a complaint.
In New York political circles, the exchange expansion controversy is seen as a watershed that will determine Mayor Mamdani's capacity to run the city. Reuters reported that Intercontinental Exchange and the New York mayor's office did not immediately comment on the controversy. As President Trump keeps hammering on Mayor Mamdani's missteps, there are calls for New York City to urgently craft a response to stem capital outflows.