Capital is moving. It is flowing away from New York and California. One southern state is catching it all.

That state is Texas. Former Congressman Jeb Hensarling says Texas is now the economic center of gravity in America. He spoke from the Dallas headquarters of the Texas Stock Exchange.

He is a strategic advisor to the new venture. He believes the shift is real and permanent. The data supports his view.

Companies are leaving traditional financial hubs. They are heading south. Texas is waving them in.

New York is pushing them out. Money goes where it feels welcome. It does not stay where it is taxed heavily.

The Texas Stock Exchange received approval last year. The Securities and Exchange Commission gave the green light. It aims to compete with the New York Stock Exchange.

It also competes with Nasdaq. This gives companies a new place to list shares. It gives investors a new place to buy them.

Supporters say this is more than just relocations. Texas is becoming a true financial center. It can challenge Wall Street directly.

Hensarling notes that Texas has been business friendly for decades. Now it is better than ever. New laws help companies incorporate there.

The exchange is the final piece of the puzzle. It makes Texas the best place to go public. Several major companies have already taken notice.

Energy Transfer listed its shares there. Dillard's did the same. Sunoco joined the group.

Texas Capital Bank is also listed. These are not small players. They are big names in business.

Major financial firms are backing the exchange too. JPMorgan has put money into the venture. BlackRock is also a key supporter.

Hensarling says this proves the model works. He points to the executives hired from rival exchanges. He says smart people do not move for free.

They move for profit. Critics call it a gimmick. They use the term Y'all Street to mock it.

Hensarling dismisses those claims quickly. He points to the office openings by competitors. He says rivals are setting up shop in Dallas.

They would not do that if it were fake. He argues that capital avoids risk. Investors do not send money to losing bets.

The backing from giants like BlackRock is validation. It shows the market trusts the new exchange. This is part of a broader economic ascent.

People are moving to Texas for the same reason. Capital follows the same path. It seeks a friendly home.

Texas provides that environment. The action is shifting south. The money trail is clear.

It leads to Dallas.