SEC approves Texas Stock Exchange rule to run auctions in designated UTP securities

The Securities and Exchange Commission has issued a notice that, effective upon filing, Texas Stock Exchange LLC (TXSE) may conduct opening and closing auctions in unlisted trading privilege (UTP) securities it designates. The notice, filed on August 31, 2026 and published September 2, 2026, cites Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4 as the statutory authority.

TXSE proposes to amend Rules 11.006, 11.022 and 11.023. The amendment would permit an Opening Auction at 9:30 a.m. ET and a Closing Auction at 4:00 p.m. ET for any "Auction-Eligible Security," a new definition that includes all TXSE-Listed securities and UTP securities designated at the exchange's discretion. Current rules limit auctions to TXSE-Listed securities; non-listed securities now start trading only through an Opening Process. The change does not extend IPO, Halt, or Volatility Closing Auctions to UTP securities.

Under the proposal, the TXSE Official Opening Price and Official Closing Price for a designated UTP security would be the price disseminated to the consolidated tape as the market-center trade, without displacing the primary listing market's official price. The Exchange will provide reasonable advance notice of any UTP designations through a circular or other publicly available notice, mirroring NYSE Arca practice. Conforming amendments clarify that Regular Hours Only Orders, the Opening Process for non-auction-eligible securities, and the Volatility Closing Auction remain limited to TXSE-Listed securities.

The filing is identified as Release No. 34-106262; File No. SR-TXSE-2026-025 and appears in Federal Register Volume 91, No. 172, pages 57176-57178, dated Tuesday, September 8, 2026. TXSE asserts the change complies with Section 6(b) of the Act, including the fraud-prevention and market-integrity objectives of Section 6(b)(5).