Join the exchanges in fighting the Trading Powerhouse NJ tax plan

Photographer: Victor J. Blue / Bloomberg

Hundreds of billions of trades zipping through scattered data centers in northern New Jersey usually do so quietly. At least, as long as the state wants a piece.

The largest US stock exchange and major market makers are joining forces to fight the proposed tax on financial transactions under consideration by New Jersey Governor Phil Murphy. Members of the newly formed coalition – e.g. New York Stock Exchange, Nasdaq Inc., Citadel Securities and Virtu Financial Inc. – Threatening to shift operations from the state if the tax comes into force.

Now, an industry trial of the backup system later this month is turning into a demonstration that Wall Street firms can pack their bags if needed. Modern markets are built on pace, but the biggest companies say they will sacrifice a fraction of a second if they mean to avoid billions in taxes.

On December 26, we will conduct a test to make sure the industry is ready to move out of New Jersey should the tax pass, “the coalition, which calls itself the Coalition to Prevent Retirement Savings, said Statement Friday.

Murphy said on August 31 that he was considering taxing high-volume electronic business in the state, home to Wall Street’s large server farm. According to the recently introduced bill, the state would charge a quarter of a percent of “financial transactions” for processing through at least 10,000 electronic processing per year.

Read more: Murphy Envs NJ Trade Tax for Social Justice Agenda