the staff of the Ridgewod blog
Mahwah NJ, Nasdaq has joined the New York Stock Exchange in looking to potentially relocate its electronic-trading systems from data centers in New Jersey over a potential new tax.
Nasdaq leases data-center space at at least one New Jersey facility, 1400 Federal Blvd. in Carteret. The NYSE uses a large facility at 1700 MacArthur Blvd. in Mahwah .
The loss of the two large stock exchanges would be another blow to New Jersey’s data-center business, a sector where the state once ranked first nationally before being overtaken by areas such as northern Virginia and Dallas-Fort Worth.
Many Wall Street firms use data centers located in northern New Jersey to handle their transactions and trading.
The proposed New Jersey tax on electronic stock-trading transactions triggered both Nasdaq and the NYSE’s possible exodus from the state.
NJ Assemblyman John McKeon has sponsored a bill that would impose a tax “on high-quantity processors of financial transactions at $0.0025 per transaction.” It would pertain to persons or entities that process 10,000 or more financial transactions through electronic infrastructure during the calendar year. New Jersey Gov. Phil Murphy, no surprise, has voiced support for the tax.