March 18 (Reuters) -

Exchange operator Nasdaq is planning to open a new

regional headquarters in Texas, deepening its presence in a

state that is fast emerging as a major financial hub rivaling

New York.

The state's favorable tax climate, lower cost of living, and

reduced energy costs have attracted a surge of companies to the

Lone Star State, including Elon Musk's Tesla and

SpaceX, as well as tech giants Oracle and Hewlett

Packard Enterprise ( HPE ).

Nasdaq will also be making additional investments in the

state to support its "broad range of clients in the region," it

said in a statement on Tuesday.

Expanding its foothold in Texas could help the exchange

operator better compete with rivals such as the New York Stock

Exchange, which last month

committed to launching an exchange

in the state.

The Texas Stock Exchange, a new venture backed by

financial heavyweights such as BlackRock ( BLK ) and Citadel

Securities, is also gearing up for a launch next year.

Nasdaq lists over 200 Texas-based companies, with a

combined market capitalization of $1.98 trillion as of December.