By John McCrank
NEW YORK, Oct 7 (Reuters) – A plan being considered by U.S. stock exchanges to leave New Jersey, where the bourses’ main electronic trading systems are located, to avoid a potential state tax on trading, could harm the industry, a senior U.S. Securities and Exchange Commission official said on Wednesday.
A sudden exit by the exchanges from northern New Jersey, where billions of dollars of trades are processed daily in three main data centers for all 16 U.S. stock exchanges, could be very costly and disruptive to market participants, said SEC Director of Trading and Markets, Brett Redfearn.
“We are watching it very closely. We are going to continue to talk to stakeholders about this, but needless to say, we certainly do have concerns,” he said at a virtual conference held by the Security Traders Association.
New Jersey is considering a tax of a quarter of