Texas listings race: TXSE offers issuers 30% of auction revenue as Nasdaq Texas plans primary listings

The Texas Stock Exchange (TXSE) has filed a fee programme under which issuers holding a primary listing would receive a share of the exchange’s auction, market data and listing-fee revenue. The filing came in the same fortnight that TXSE took its first wave of primary-listing transfers and won a secondary listing from Charles Schwab.

The Shared Listings Program was filed on 5 October and published by the SEC on 8 October (Release 34-106638). It is effective on filing. TXSE describes US listings as “effectively” a choice between “two exchanges, operating as a duopoly”. It says incumbents’ offerings rely on “marketing and soft-dollar support” that obscures the economics.

How the credits work

A primary-listed company would get an annual credit made up of three parts:

• Auction Credit: 30% of TXSE’s opening and closing auction transaction revenue in the issuer’s securities. The filing’s example: $100,000 of auction revenue produces a $30,000 credit.
• Market Data Credit: a pool equal to 30% of TXSE’s total proprietary market data revenue, split pro rata by days listed and capped at $100,000 per issuer.
• Listing Fee Credit: 30% of the annual listing fee paid.

Acquisition companies (SPACs) qualify only after their business combination completes.

Transfers and a Schwab listing

A TXSE member alert listed securities scheduled to transfer their primary listings from 5 October:

• Energy Transfer common units and its 9.250% Series I preferred units
• Sunoco and SunocoCorp common units
• USA Compression common units
• Dillard’s Class A stock and Dillard’s Capital Trust I capital securities

A second alert said Texas Capital Bancshares common stock and its 5.75% preferred would begin trading on TXSE on 8 October at 8:00 ET. The preferred moves from Nasdaq’s TCBIO symbol to TCBI PRB. TXSE told members the securities print to the SIAC Tape B feed. It also told them to:

• register market makers through its Stockyard portal
• configure its Corporate Actions Listing Feed (CALF)
• make sure systems can process its AuctionPreamble and AuctionBandWindow market-data messages

Separately, Schwab said on 1 October it would dual-list its common stock on TXSE from the open on 7 October, under SCHW, while keeping its primary listing on the NYSE. Schwab is headquartered in Westlake, Texas, and was among TXSE’s original investors.

Nasdaq Texas readies its own move

On 29 September the SEC published a Nasdaq Texas filing (SR-NasdaqTX-2026-046) to align its listing rules with Nasdaq’s ahead of becoming a primary listing venue. The changes take effect on filing but will only become operative on an announcement “expected in the second quarter of 2027”. The rule changes:

• remove the rule requiring dual listing on another exchange
• add delisting authority after SEC trading suspensions
• copy Nasdaq’s restrictions on China-based companies, including a $25m minimum firm-commitment IPO and a ban on direct listings

Nasdaq Texas says it will file listing fees separately.

Why it matters

Revenue-sharing on auctions turns the closing cross into a line item that issuers can see. Incumbents may face questions from listed companies about what their own closes earn. For trading desks, the immediate work is operational. A primary listing transfer moves the opening, closing and halt auctions for that name to a new venue, with its own order types, cut-offs and imbalance messages.

Smart order routers and closing-auction algos need TXSE auction connectivity configured for each security before the transfer date. Market makers need registrations in place. Market data teams need to handle the new message types and Tape B classification. Each new Texas primary name adds to that list.

Sources

• SEC Release 34-106638, SR-TXSE-2026-038, Shared Listings Program, 8 October 2026 — https://www.sec.gov/files/rules/sro/txse/2026/34-106638.pdf
• SEC Release 34-106520, SR-NasdaqTX-2026-046, 29 September 2026 — https://www.sec.gov/files/rules/sro/nasdaqtx/2026/34-106520.pdf
• Charles Schwab, “Schwab Initiates Secondary Listing on the Texas Stock Exchange”, 1 October 2026 — https://pressroom.aboutschwab.com/press-releases/press-release/2026/Schwab-Initiates-Secondary-Listing-on-the-Texas-Stock-Exchange/default.aspx
• TXSE member alert on scheduled transfers beginning 5 October 2026 — https://www.txse.com/alerts/fd5b0975-9e94-495c-8237-fbfe868484bc
• TXSE member alert on Texas Capital Bancshares, 8 October 2026 — https://www.txse.com/alerts/70162a6d-331b-404e-abdb-746145d27200