SEC grants Texas Stock Exchange accelerated approval for commodity trust rule amendment

On October 29, 2026, the Securities and Exchange Commission issued Release No. 34-106769 and File No. SR-TXSE-2026-041, granting Texas Stock Exchange LLC accelerated approval of a proposed amendment to its Rule 17.111(d). The order follows the Exchange's filing on October 16, 2026 under Section 19(b)(1) of the Securities Exchange Act and Rule 19b-4, and it authorizes the rule change on an accelerated basis.

The amendment establishes generic listing standards for Commodity-Based Trust Shares, allowing the Exchange to list and trade such shares pursuant to Rule 19b-4(e) without filing a separate Section 19(b) proposal for each product. Among the substantive changes, the rule permits up to 15% of a Trust's net asset value to consist of certain digital commodities and securities, authorizes actively managed Trust shares, and sets new eligibility criteria, disclosure, liquidity, trading halt, firewall, surveillance and other investor-protection requirements.

The Commission is publishing this notice to solicit comments from interested parties. The proposed standards mirror generic listing standards previously approved for Nasdaq, Cboe BZX, NYSE Arca and Nasdaq Texas in July 2026, which also allowed a 15% digital-commodity allocation and active management subject to safeguards. The Texas Stock Exchange's filing incorporates those standards and adapts them to its rule structure.

In addition to procedural updates, the Exchange proposes to modernize several definitions. Rule 17.111(d)(3) would redefine Commodity-Based Trust Shares to include trusts, LLCs, partnerships or similar entities not registered as investment companies, and expand permissible holdings to commodities, commodity-based assets, securities, cash and cash equivalents. New definitions for "commodity-based asset," "digital commodity" and "cash equivalent" align with the Commission's definitions used for other exchanges.

With the order in place, TXSE may list and trade Commodity-Based Trust Shares that satisfy the generic standards without a separate 19(b) filing. Shares that fail to meet the standards remain subject to a traditional Section 19(b) filing, and the Exchange retains authority to suspend trading and initiate delisting under Rule Series 16.500 for non-compliant products.