Nasdaq Texas adopts immediate rule change ending information circulars for UTP derivatives
The amendment, effective immediately upon filing on September 28, 2026, removes the Exchange's information-circular requirement for members trading UTP Derivative Securities on Nasdaq Texas.
On September 28, 2026 Nasdaq Texas, LLC filed a proposed rule change with the Securities and Exchange Commission (Release No. 34-106629; File No. SR-NasdaqTX-2026-049; FR Doc No. 2026-20804). The Commission published a notice on October 7, 2026 indicating that the amendment is effective immediately.
The proposal deletes Rule 5740(a)(1), eliminating the obligation for the Exchange to distribute an information circular to members before trading any UTP Derivative Security. It also amends Rule 5740(a)(2) to require that a written description be provided in a form approved by the listing exchange or prepared by the issuing open-ended management company, delivered no later than the confirmation of the first transaction in the series.
Additional substantive revisions add explicit cross-references to General 9, Section 10 (Recommendations to Customers) and Equity 2, Section 20 (Customer Disclosures), replace the reference to Rule 4630 with Equity 10, Section 8, and specify Equity 4 for Rule 4120. These changes preserve visibility of existing suitability and risk-disclosure obligations after the circular requirement is removed.
The Exchange also renumbers Rules 5740(a)(2) through (5) as Rules 5740(a)(1) through (4) and makes other technical, non-substantive updates, including the correction of obsolete rule citations.
The notice invites comments from interested persons on the proposed rule change, with the filing and immediate effectiveness remaining in force while the comment period proceeds.
Further reading