The New York Stock Exchange said it will test its ability to operate outside of New Jersey as the state considers a tax on financial transactions.
The exchange, in coordination with Nasdaq Inc., Cboe Global Markets Inc. and other industry participants, will conduct a test of all its exchanges operating from their secondary locations on Sept. 26. NYSE will operate NYSE Chicago from its secondary data-center from Sept. 28 to Oct. 2, to “confirm the industry’s ability to seamlessly move live trading out of New Jersey,” according to a statement.
New Jersey Governor Phil Murphy said on Aug. 31 he was “very seriously” considering a tax on high-volume electronic trading in the state, home to Wall Street’s massive server farms. The state would charge a quarter of a cent per “financial transaction” at entities processing at least 10,000 annually via electronic infrastructure in the state, according to a recently introduced bill.
Some industry executives had said such a tax would undermine New Jersey’s standing as the center of U.S. financial-data processing. Servers are warehoused in Mahwah, Secaucus, Carteret and other locations.
This article was provided by Bloomberg News.