The NYSE plans to announce that it will run one of its exchanges from a backup site in Chicago for a week as a demonstration of its readiness to quit the state. Like many other exchange operators, the NYSE runs its electronic trading systems out of data centers in northern New Jersey. Such market operators have been concerned about a bill in the New Jersey legislature that would impose a tax on firms that process large quantities of trades in the state.
“To fully service our exchange members and their clients, and be responsive to their concerns, we must prepare for a scenario in which the proposed New Jersey law passes,” the memo said. “This preparation includes demonstrating our ability to move all of our exchanges’ primary matching systems out of the state.”