Notice2025-14755

Texas Stock Exchange LLC; Notice of Filing of Amendment No. 2 to an Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934

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Published
August 5, 2025

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 90 Issue 148 (Tuesday, August 5, 2025)</title>
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[Federal Register Volume 90, Number 148 (Tuesday, August 5, 2025)]
[Notices]
[Pages 37607-37608]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14755]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103604; File No. 10-249]


Texas Stock Exchange LLC; Notice of Filing of Amendment No. 2 to 
an Application for Registration as a National Securities Exchange Under 
Section 6 of the Securities Exchange Act of 1934

July 31, 2025.
    On January 31, 2025, Texas Stock Exchange LLC (``TXSE'') filed with 
the Securities and Exchange Commission (``Commission'') a Form 1 
application under the Securities Exchange Act of 1934 (``Exchange 
Act''), seeking registration as a national securities exchange under 
Section 6 of the Exchange Act.\1\ On April 2, 2025, TXSE submitted 
Amendment No. 1 to its Form 1.\2\ Notice of the amended application was 
published for comment in the Federal Register on April 10, 2025.\3\ The 
Commission has received comments on the Form 1.\4\ On July 9, 2025, the 
Commission instituted proceedings pursuant to Section 19(a)(1)(B) of 
the Exchange Act \5\ to determine whether to grant or deny TXSE's 
application for registration as a national securities exchange under 
Section 6 of the Exchange Act.\6\ On July 29, 2025, TXSE filed a second 
amendment to its Form 1 application (``Amendment No. 2'').\7\ The 
Commission is publishing this notice in order to solicit views of 
interested persons on TXSE's Form 1, as amended.
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    \1\ 15 U.S.C. 78f.
    \2\ TXSE's Form 1 as amended, including all its exhibits, is 
available at: <a href="https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/txse-form-1">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/txse-form-1</a>.
    \3\ See Securities Exchange Act Release No. 102773 (Apr. 4, 
2025), 90 FR 15375 (Apr. 10, 2025).
    \4\ The public comment file for TXSE's Form 1 (File No. 10-249) 
is available on the Commission's website at: <a href="https://www.sec.gov/comments/10-249/10-249.htm">https://www.sec.gov/comments/10-249/10-249.htm</a>.
    \5\ 15 U.S.C. 78s(a)(1)(B).
    \6\ See Securities Exchange Act Release No. 103422 (July 9, 
2025), 90 FR 31360 (July 14, 2025) (``OIP'').
    \7\ Amendment No. 2 is available on the Commission's website at: 
<a href="https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/txse-form-1">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/txse-form-1</a>.
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I. Description of TXSE

    TXSE proposes to operate a fully automated limit order book for 
orders to buy and sell securities with a continuous automated matching 
function. TXSE would execute orders in price/time priority, and would 
``rank equally priced trading interest within the System in time 
priority in the following order: (i) The portion of a Limit Order with 
a Displayed instruction (including Market Maker Peg Orders); (ii) Limit 
Orders with a Non-Displayed instruction (including the Reserve Quantity 
of Limit Orders); and (iii) Orders with a Peg instruction (i.e., 
Primary Peg Orders, Midpoint Peg Orders and Market Peg Orders), ranked 
in priority based upon the time such orders were initially received by 
the System.'' \8\ TXSE would not maintain a physical trading floor. 
Liquidity would be derived from orders to buy and orders to sell 
submitted to TXSE electronically by its registered broker-dealer 
members from remote locations. TXSE proposes to have one class of 
membership open to registered broker-dealers, and also proposes to 
allow members to register under TXSE rules as market makers on TXSE and 
be subject to certain specified requirements and obligations set forth 
in TXSE's proposed rules. TXSE would be a subsidiary of its parent 
company, TXSE Group Inc. (``TXSE Group''), which would directly hold 
100% of the equity of TXSE. In turn, TXSE Group would be owned by a 
group of investors that are party to a stockholders' agreement 
(``Stockholders' Agreement''). The Stockholders' Agreement would 
provide a 40% cap on beneficial ownership of stock of TXSE Group by any 
person (alone or together with its related persons) and would further 
cap beneficial ownership of TXSE Group by members of TXSE at 20%.
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    \8\ Proposed TXSE Rule 11.008. Capitalized terms used but not 
defined herein have the meanings specified in Exhibit B-1, as 
amended.
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II. Amendment No. 2 to TXSE's Form 1

    In Amendment No. 2, TXSE proposes to revise Exhibits A-3, B-1, C, 
D, D-1, E, E-1, F-1, F-2, F-6, F-7, F-8, F-10, F-16, H-6, H-14, H-17, 
J, and K principally to: (1) reflect that TXSE will not offer any 
outbound routing functionality and to conform its rules relating to 
trading halts to the rules of another self-regulatory organization; (2) 
reflect updates regarding its affiliates; (3) make technical and 
conforming changes to certain membership related-forms and listing 
forms, including the corporate governance certification form for 
issuers; and (4) update the list of shareholders indirectly owning 5% 
or more of TXSE. In Amendment No. 2, TXSE also proposes to add Exhibits 
D-2, D-3, D-4, D-5, and D-6 to provide unaudited financial statements 
for certain of TXSE's affiliates.

III. Request for Written Comment

    The Commission requests that interested persons provide written 
views and data with respect to TXSE's

[[Page 37608]]

Form 1, as amended. Comments may be submitted by any of the following 
methods:

Electronic Comments

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/other.shtml">https://www.sec.gov/rules/other.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#f381869f96de909c9e9e969d8780b3809690dd949c85"><span class="__cf_email__" data-cfemail="82f0f7eee7afe1edefefe7ecf6f1c2f1e7e1ace5edf4">[email&#160;protected]</span></a>. Please include 
file number 10-249 on the subject line.

Paper Comments

    <bullet> Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to file number 10-249. This file number 
should be included on the subject line if email is used. To help the 
Commission process and review your comments more efficiently, please 
use only one method. The Commission will post all comments on the 
Commission's internet website (<a href="https://www.sec.gov/rules/other.shtml">https://www.sec.gov/rules/other.shtml</a>). 
Do not include personal identifiable information in submissions; you 
should submit only information that you wish to make available 
publicly. We may redact in part or withhold entirely from publication 
submitted material that is obscene or subject to copyright protection. 
All submissions should refer to file number 10-249 and should be 
submitted on or before August 26, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\9\
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    \9\ 17 CFR 200.30-3(a)(71)(ii).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-14755 Filed 8-4-25; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on August 5, 2025.

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