TXSE rule changes allow opening and closing auctions in securities listed on other exchanges, with a flat $0.0012 auction fee

The Texas Stock Exchange (TXSE) can now run auctions in securities it does not list, once it designates them. Its auction rules had applied only to TXSE-listed securities, with everything else starting the day through an opening process. A rule filing on 31 August changes that. Two filings this month then adjusted how its auctions work and set a price for them. Together they make TXSE a potential second auction venue for designated securities listed elsewhere. The filing does not limit designation by product type, so on our reading ETFs listed on other exchanges could be designated. It names no securities.

Auctions for UTP securities

Under SR-TXSE-2026-025, TXSE proposes to “conduct an Opening Auction at 9:30 a.m. ET and a Closing Auction at 4:00 p.m. ET in UTP securities designated by the Exchange in its discretion”. UTP (unlisted trading privileges) securities are those listed on another exchange but traded on TXSE. Current rules, the filing says, mean TXSE “will only conduct Opening and Closing Auctions in TXSE-Listed Securities”, while other securities “start trading on the Exchange subject to an Opening Process”.

TXSE describes the proposal as “substantially similar to the existing functionality of NYSE Arca”. The SEC approved that model for Arca in January 2016, when Arca said it would designate UTP securities as eligible for its opening and closing auctions. According to the SEC’s order, Arca said this would support efforts “to increase resiliency by having auctions on Arca serve as a backup to either NYSE or Nasdaq if one of those markets is unable to conduct an auction”.

The TXSE filing sets limits on the change:

• Scheduled auctions only. TXSE “is not proposing to allow for IPO, Halt, or Volatility Closing Auctions in UTP securities”.
• Same mechanics. Price collars, price determination, order ranking and allocation, and order types apply to a designated UTP security “in the same manner as they apply to a TXSE-Listed Security”.
• Notice. TXSE will give “reasonable advance notice” of designated securities “through a circular or other publicly available notice”.

Whose closing price?

The key passage for anyone marking to the close concerns official prices. A TXSE closing price set in a UTP security “would be TXSE’s market-center closing price and would not displace or alter the official closing price established by the primary listing market”. The same applies at the open. Where there is no qualifying trade on the day, TXSE would use, for a UTP security, “the official closing price disseminated by the primary listing market for the prior trading day”.

The filing says this split follows Arca. In a 2016 rule change, Arca set out that, for a UTP security, it would use “the official closing price as disseminated by the primary listing exchange” to set its trading collar when there is no same-day consolidated last sale, and as its auction reference price.

TXSE filed the change for immediate effectiveness. Such a filing “normally does not become operative prior to 30 days after the date of filing”, and TXSE asked the SEC to waive that delay so it could “compete on equal terms with an exchange that already has substantially similar authority”. In its notice of 2 September, the SEC waived the delay and designated the change operative upon filing. Auctions in any given security still depend on TXSE designating it by circular.

A flat auction fee

SR-TXSE-2026-034 prices the auctions. It sets a fee of “$0.0012 per share executed” for orders executed in TXSE’s Opening, Closing, IPO, Halt or Volatility Closing Auctions. The fee applies whether an order is displayed or non-displayed, and whether it adds or removes liquidity, and it applies in place of any other transaction-specific fee or rebate. TXSE says “each side of an auction execution would be assessed the applicable fee”, and that there is no rebate, discount, tier or exemption for any category of member. TXSE filed it as a change to its fees, which it says makes it effective upon filing with the SEC. It first filed the fee on 15 September as SR-TXSE-2026-031, withdrew that filing on 23 September and refiled it as SR-TXSE-2026-034, which was filed on 24 September.

TXSE’s filing benchmarks the fee against rival exchanges’ published schedules:

Venue (as cited by TXSE)	Closing auction	Opening auction
TXSE (proposed)	$0.0012	$0.0012
NYSE Arca and NYSE Texas	$0.0012	$0.0015
Cboe BZX	$0.0011	$0.0013

On those figures, TXSE matches Arca at the close and charges $0.0003 a share less at the open, by The Midpoint’s calculation. TXSE says the rival fees apply to “specified orders”, and BZX’s closing rate also covers some continuous-book executions, so the comparison is not like-for-like for every order type.

Halt auction changes

SR-TXSE-2026-032, filed on 15 September, changes how TXSE handles orders during a regulatory halt and parts of its IPO, halt and volatility closing auctions. These auctions remain limited to TXSE-listed securities. The SEC waived the 30-day operative delay on 21 September. The main changes:

• Resting orders kept. Non-displayed limit orders and pegged orders will no longer be cancelled during a regulatory halt.
• Limit orders only. Only limit orders may be entered during a halt auction’s quote-only period, with a limited exception for market-on-open orders queued before 9:28 ET.
• New auction data. Every five seconds, TXSE would publish the halt auction collars and the interest priced at or through each, instead of reference and indicative prices.

Why it matters for desks

• A second open and close. If TXSE designates securities, desks get another scheduled single-price auction in names listed elsewhere. Routers would need TXSE’s designation circulars to know which names qualify.
• Official prices unchanged. TXSE’s auction price would be TXSE’s own market-centre price only. The primary listing market’s official open and close stay the reference.
• Simple pricing. One $0.0012 rate for every auction execution, on both sides, is easy to model against rivals’ order-type-specific fees.

Added 1 Nov 2026 to the ETFs section; dated to the event, not published at the time.

Sources

• SR-TXSE-2026-025, 31 Aug 2026
• SEC Release 34-106262 (SR-TXSE-2026-025), 2 Sep 2026
• SR-TXSE-2026-032, 15 Sep 2026
• SEC Release 34-106450 (SR-TXSE-2026-032), 21 Sep 2026
• SR-TXSE-2026-034, 24 Sep 2026
• SEC Release 34-76869 (SR-NYSEArca-2015-86), 11 Jan 2016
• SEC Release 34-78357 (SR-NYSEArca-2016-94), 19 Jul 2016