My mind was sort of blown when I read this recent press release saying that the Texas Stock Exchange (TXSE) had filed this Form 1 application to register as a national securities exchange. I was tripping because the TXSE apparently is the first fully integrated exchange to file a registration in 25 years, which means that perhaps I was one of the last SEC staffers to review a Form 1.
I’ll never forget being assigned the Form 1 and wondering, of course, “What in the world is a Form 1?” It felt like a joke. Anyway, it was real, and if I recall correctly, there were several Form 1s filed in the ‘90s – though, I did a search on the SEC’s site (as well as a Google search) and couldn’t find any of those old Form 1s mentioned. The TXSE Form 1 is posted on the SEC’s site under “Other Commission Orders, Notices, and Information” and isn’t filed on Edgar.
Anyway, the TXSE appears to be part of the campaign being waged by Texas to become a rival to New York and Delaware for finance and corporate doings. It’s notable that both the NYSE and Nasdaq have responded to Texas’ encroachment by establishing operations in that state this year.
Here’s a summary of the press release:
Competitive positioning
- TXSE appears to be positioning itself as a direct competitor to the NYSE and Nasdaq.
- TXSE is not targeting small/micro-cap companies as the NYSE American and Nasdaq Capital Market do.
- TXSE’s initial listing requirements are more stringent than Nasdaq’s lowest tier.
- TXSE will not divide into tiers, unlike Nasdaq.
- TXSE’s initial listing criteria most closely align with NYSE standards.
Listing rules and operations
- TXSE’s proposed rules strongly resemble Nasdaq’s rules in several key areas.
- TXSE’s trading hours match the 9:30 am – 4:00 pm ET schedule of the NYSE and Nasdaq.
- How TXSE will interpret its rules and exercise discretion regarding maintaining listed status is unclear.
