NYSE Texas amends bylaws to replace "Permit Holders" with "Participants"
The amendment applies to all NYSE Texas members and takes effect immediately upon filing on October 15, 2026.
On October 15, 2026, NYSE Texas, Inc. filed a proposed rule change with the Securities and Exchange Commission under Section 19(b)(1) of the Exchange Act and Rule 19b-4. The filing, identified as Release No. 34-106752; File No. SR-NYSETEX-2026-38 and published in the Federal Register (Vol. 91, No. 210, pages 69005-69008, FR Doc No. 2026-22260), was announced on October 28, 2026 and is effective immediately.
The amendment would revise the title, Article II, Sections 1, 2 and 3, Article IV, Section 7, and Article IX, Section 1 of the Exchange's bylaws. It replaces the term "Permit Holders" with "Participants," clarifies the definition of "Participant" to mean any member as defined in the Exchange Act, removes the requirement that the fair-representation director be a Participant, and makes a conforming technical change to the bylaws' title.
The Exchange cites the Exchange Act's fair-representation requirement (15 U.S.C. 78f(b)(3)) and the recent addition of a "Limited Underwriting Members" category, which are members without trading permits, as reasons for the change. Aligning the terminology with NYSE affiliates and other self-regulatory organizations ensures that all members have appropriate representation in director nominations.
The proposed revisions also alter the Nominating Committee's process: the Committee would no longer be required to publish the name of a Participant as its nominee for a Non-Affiliated Director, giving it flexibility to name any qualified individual. A non-substantive change adds the phrase "First Amended and Restated" to the bylaws' title.
The Commission is publishing this notice to solicit comments from interested persons on the proposed rule change, as required by Section 19(b)(1) and Rule 19b-4.
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