Federal Register #SR-TXSE-2026-009

SEC Notice: Texas Stock Exchange LLC Proposed Rule Change for ETF Shares Listing Standards

This SEC notice announces a proposed rule change by Texas Stock Exchange LLC (TXSE) regarding ETF Shares listing standards. - Government buyer: Securities and Exchange Commission (SEC) - No OEMs or vendors are mentioned; this is a regulatory notice, not a procurement - Products/services requested: None; the notice concerns a rule change, not acquisition - Key proposal: Eliminate the 'Beneficial Holders Rule' requiring at least 50 beneficial holders for ETF Shares after 12 months - TXSE argues the rule is unnecessary due to ETF structure and market mechanisms - Proposal includes renumbering the rule to reflect the deletion - No goods, services, or contract requirements are involved - SEC is soliciting public comments on the proposed regulatory change

Description

The Texas Stock Exchange LLC filed a proposed rule change to amend Rule 17.104 related to the continued listing requirements for Exchange Traded Fund (ETF) Shares listed on the Exchange. The proposal seeks to eliminate the Beneficial Holders Rule, which requires a minimum of 50 beneficial holders after the initial 12-month period following listing. The Exchange argues that this rule does not advance investor protection objectives specific to ETFs and can produce arbitrary and negative outcomes. The proposal also includes renumbering the rule to reflect the deletion. The Exchange believes that existing market dynamics and regulatory frameworks sufficiently address concerns related to manipulation, liquidity, and distribution of ETFs.

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