
SEC Approves TXSE as National Securities Exchange
The Texas Stock Exchange is the first national securities exchange to receive SEC approval in decades.
On September 30, 2025, Texas Group Inc. ("TXSE Group") announced that it has received formal approval of its Form 1 Registration Statement from the U.S. Securities and Exchange Commission ("SEC") to operate the Texas Stock Exchange ("TXSE") as a national securities exchange.
TXSE filed its initial Form 1 in January 2025, with the aim of introducing a "world class" and "fully transparent" exchange with a competitive fee structure and advanced technology platform. TXSE is positioning itself as an alternative to the traditional listing venues of NYSE and Nasdaq—and one that is poised to capitalize on Texas's initiatives to create a business-friendly regulatory environment.
Texas provides incentives for non-Texas companies to consider a listing in the state. Specifically, in May 2025, Texas passed SB 1057, which permits a company that is neither incorporated nor headquartered in Texas to set higher thresholds for shareholder proposal submissions if it lists on any Texas-based exchange, including but not limited to TXSE.
In its press release announcing the SEC's approval, TXSE describes its goal to "reverse the decades-long decline in the number of U.S. public companies by reducing the burden of going and staying public while maintaining some of the highest quantitative standards in the industry." A strategic advisor to TXSE has stated his expectation that "major companies" will choose to list or dual list on TXSE, with IPO capabilities to commence in late 2026.
TXSE will be structured as a single-tier exchange with relatively high listing requirements targeted towards mid- and large-cap issuers. This contrasts with the multitier structures of NYSE and Nasdaq, which provide alternative financial thresholds to attract smaller-cap companies. Further, unlike the optional review process of NYSE and Nasdaq, TXSE will mandate a formal confidential pre-application review for all listings.
The SEC acknowledged in its approval that many attributes of TXSE's listing rules, including its listing standards and governance guidelines, are substantially similar to the pre-existing NYSE and Nasdaq frameworks. Per the SEC, TXSE's corporate governance standards are "designed to promote independent and objective review and oversight of the accounting and auditing practices of listed issuers and to enhance audit committee independence, authority, and responsibility."
The SEC's approval authorizes TXSE to commence operations upon satisfaction of certain operational conditions and approvals. TXSE will announce a launch schedule at a later date but plans to commence trading as soon as 2026.