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Dallas as a Financial Hub: The Y'all Street Effect

Devon Edwards
September 2024
5 min read

Walk through Uptown Dallas or the Arts District on a weekday, and you'll notice something that would have seemed unlikely a decade ago: financial professionals. Lots of them. The "Y'all Street" phenomenon is real, and it's accelerating.

The Migration

Major financial institutions have been relocating operations to Texas at an unprecedented pace:

  • Charles Schwab moved its headquarters from San Francisco to Westlake, TX
  • Goldman Sachs expanded its Dallas presence significantly
  • JPMorgan Chase built a major campus in Plano
  • Citadel and numerous hedge funds have established Texas operations

This isn't just back-office migration. Trading desks, technology teams, and decision-makers are moving to Texas.

Why Texas?

The drivers are straightforward:

Tax Advantages

Texas has no state income tax. For a portfolio manager earning $2M annually, that's roughly $200K in annual savings compared to New York or California. Multiply that across a team, and the math becomes compelling.

Cost of Living

A junior developer in Dallas can afford a house. In New York or San Francisco, the same salary barely covers a studio apartment. This makes recruiting easier and retention better.

Business Climate

Texas regulators and politicians are openly supportive of financial services growth. The contrast with increasingly hostile regulatory environments in other states is stark.

Quality of Life

Shorter commutes, more space, and a lower cost of living translate to happier employees. For firms competing for talent, this matters.

TXSE: The Catalyst

The Texas Stock Exchange, launching in February 2026, represents the culmination of this trend. TXSE will be the first new national stock exchange in over a decade, and it's headquartered in Dallas.

TXSE isn't just symbolic. It creates practical infrastructure for the Texas financial ecosystem:

  • Local connectivity reduces latency for Texas-based firms
  • Regional focus on Texas-headquartered companies
  • Lower listing fees attract companies from NYSE and NASDAQ
  • Creates demand for local financial technology services

What This Means for FinTech

The growth of financial services in Texas creates corresponding demand for technology services:

  • Exchange Connectivity: Firms need to connect to TXSE and other venues
  • Data Infrastructure: Local market data presence becomes valuable
  • Talent Development: Texas universities are expanding finance and CS programs
  • Service Providers: Everything from compliance software to trading systems

Kilobytez's Position

We founded Kilobytez in Dallas specifically to serve this growing market. Being local matters in financial technology—understanding the regional ecosystem, being available for on-site work, and building long-term relationships.

As Texas continues its emergence as a financial hub, we're committed to providing the technology expertise that firms need to compete.

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Let's talk about how we can help you build better trading infrastructure.

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