Notice2026-03703
Self-Regulatory Organizations; Texas Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Add an Offset Peg Order
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 25, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 37 (Wednesday, February 25, 2026)</title>
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[Federal Register Volume 91, Number 37 (Wednesday, February 25, 2026)]
[Notices]
[Pages 9304-9307]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03703]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104876; File No. SR-TXSE-2026-001]
Self-Regulatory Organizations; Texas Stock Exchange LLC; Notice
of Filing and Immediate Effectiveness of a Proposed Rule Change To Add
an Offset Peg Order
February 20, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 17, 2026, Texas Stock Exchange LLC (the ``Exchange''
or ``TXSE'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A)(iii).
\4\ 17 CFR 240.19b-4(f)(6).
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange filed a proposal to add an Offset Peg order that
operates similarly to offset peg orders on other exchanges, as further
described below.
The text of the proposed rule change is provided in Exhibit 5. The
text of the proposed rule change is available on the Commission's
website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>) at the Exchange's website
(<a href="https://txse.com/rule-filings">https://txse.com/rule-filings</a>), and at the principal office of the
Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
Sections A, B, and C below, of the most significant parts of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 11.006(h) to add an Offset Peg
order with similar functionality to comparable pegged orders on other
exchanges. In addition, the Exchange is proposing to make certain
corresponding changes to TXSE Rules 11.007(c), 11.008(a)(2)(iii),
11.0120H(b)(7)(A)(i), 11.022(a)(8)(A)(i), and 11.023(a)(2) in order to
add reference to Offset Peg orders in other places in the rulebook
where other Pegged Order \5\ types are mentioned, to make a copycat
change to the definition of Pegged Order in Rule 11.006(h), and to make
a cleanup change to add a reference to Primary Peg Orders in Rule
11.023(a)(2).
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\5\ As provided in Rule 11.006(h), the term ``Pegged Order''
means an order that automatically re-prices in response to changes
in the NBBO, as further described in TXSE Rule 11.007(c). A User
entering a Pegged Order can specify that the order's price will peg
to the NBB or NBO, the midpoint of the NBBO or to the opposing bid
or offer, as described below.
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Overview
Currently, the Exchange offers three types of Pegged Orders:
Primary Peg,\6\ Midpoint Peg,\7\ and Market Peg,\8\ each of which are
non-displayed orders that upon entry into the System \9\ and while
resting on the TXSE Book,\10\ are pegged to a reference price based on
the NBBO \11\ and the order is automatically managed by the System in
response to changes in the NBBO.
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\6\ As provided in Rule 11.006(h)(1), the term ``Primary Peg''
means an order with instructions to peg to the NBB, for a buy order,
or the NBO, for a sell order. A User submitting a Pegged Order with
a Primary Peg instruction may, but is not required to, include a
limit price on such order.
\7\ As provided in Rule 11.006(h)(2), the term ``Midpoint Peg''
means a Pegged Order with an instruction to peg to the midpoint of
the NBBO. A User submitting a Pegged Order with a Midpoint Peg
instruction may, but is not required to, include a limit price on
such order. A Pegged Order with a Midpoint Peg instruction and a
limit price that is more aggressive than the midpoint of the NBBO
will execute at the midpoint of the NBBO or better subject to its
limit price. A Pegged Order with a Midpoint Peg instruction may
execute at its limit price or better when its limit price is less
aggressive than the midpoint of the NBBO. A Pegged Order with a
Midpoint Peg instruction will be ranked at the midpoint of the NBBO
where its limit price is equal to or more aggressive than the
midpoint of the NBBO. In such case, pursuant to TXSE Rule 11.008,
all Pegged Orders that are ranked at the midpoint of the NBBO will
retain their priority as compared to each other based upon the time
such orders were initially received by the System. A Pegged Order
with a Midpoint Peg instruction will be ranked at its limit price
where its limit price is less aggressive than the midpoint of the
NBBO.
\8\ As provided in Rule 11.006(h)(3), the term ``Market Peg''
means an order with instructions to peg to the NBO, for a buy order,
or the NBB, for a sell order. A User submitting a Pegged Order with
a Market Peg instruction may, but is not required to, include a
limit price on such order.
\9\ As provided in Rule 1.005(ff), the term ``System'' means the
electronic communications and trading facility designated by the
Board through which securities orders of Users are consolidated for
ranking and execution.
\10\ As provided in Rule 1.005(ii), the term ``TXSE Book'' means
the System's electronic file of orders.
\11\ As provided in Rule 1.005(r), the term ``NBBO'' means the
national best bid or offer.
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The Exchange is proposing to add a fourth type of Pegged Order, an
Offset Peg, which is a non-displayed Pegged Order with instructions to
peg to the less aggressive of: (i) the primary quote (i.e. the NBB \12\
for buy orders and NBO \13\ for sell orders) plus or minus (plus for
buy orders and minus for sell orders) an offset amount; \14\ and (ii)
the
[[Page 9305]]
order's limit price. While resting on the TXSE Book an Offset Peg Order
to buy (sell) order is automatically adjusted by the System in response
to changes in the NBB (NBO) plus (minus) the offset amount up (down) to
the order's limit price. Based on informal feedback from Members, the
Exchange believes that Offset Peg orders will provide additional
flexibility to the Exchange's Pegged Order functionality and would be
useful to market participants seeking to trade within the NBBO.
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\12\ As provided in Rule 1.005(r), the term ``NBB'' means the
national best bid.
\13\ As provided in Rule 1.005(r), the term ``NBO'' means the
national best offer.
\14\ The Exchange notes that the offset amount will be entered
by Users in basis points at or within the NBBO. As provided in
proposed Rule 11.006(h)(4), if the offset amount would result in the
price of an Offset Peg order being in an increment smaller than
specified in Rule 11.006(g), the price of a buy order will be
rounded down and the price of a sell order will be rounded up to the
nearest permissible increment. If no offset amount is specified, the
System will consider the offset amount to be zero.
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Offset Peg Order
The Exchange proposes to add new Rule 11.006(h)(4) to add the
Offset Peg order. As proposed, an Offset Peg order would be a Pegged
Order with instructions to peg to the less aggressive of the primary
quote (i.e., the NBB for buy orders and NBO for sell orders) plus or
minus (plus for buy orders and minus for sell orders) an offset amount
or the order's limit price upon entry and when posting to the TXSE
Book. While resting on the Order Book, (i) a buy order is automatically
adjusted by the System in response to the changes in the NBB plus the
offset amount up to the order's limit price; and (ii) a sell order is
automatically adjusted by the System in response to changes in the NBO
minus the offset amount down to the order's limit price. If the offset
amount would result in the price of an Offset Peg order being in an
increment smaller than specified in Rule 11.006(g), the price of a buy
order will be rounded down and the price of a sell order will be
rounded up to the nearest permissible increment.\15\ If no offset
amount is specified, the System will consider the offset amount to be
zero. A User \16\ submitting a Pegged Order with an Offset Peg
instruction is required to include a limit price on such order. An
Offset Peg order entered with an offset equal to a Primary Peg, a
Midpoint Peg, or a Market Peg will be treated as a Primary Peg, a
Midpoint Peg, or a Market Peg, respectively.
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\15\ Like Midpoint Peg orders, Offset Peg orders may result in
executions at a sub-penny midpoint price. Pursuant to Rule 612 under
Regulation NMS execution at a sub-penny midpoint price is
permissible so long as the execution did not result from an
impermissible sub-penny order or quotation. See Securities Exchange
Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37556 (June 29,
2005) (File No. S7-10-04) (``NMS Adopting Release'').
\16\ As provided in Rule 1.005(jj), the term ``User'' means any
Member or Sponsored Participant who is authorized to obtain access
to the System pursuant to TXSE Rule 11.003.
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The Exchange is also proposing to amend Rule 11.007(c) to provide
that for Offset Peg orders, a User may indicate to peg an order to a
reference price plus or minus an offset amount (the NBB plus the offset
amount up to the order's limit price for buy orders, the NBO minus the
offset amount down to the order's limit price for sell orders). Like
other Pegged Orders, Offset Peg orders will be subject to Rules
11.007(c)(1)-(7), which provide: (1) a Pegged Order may contain the
following TIF instructions: Day,\17\ SYS,\18\ IOC,\19\ RHO \20\ or GTT;
\21\ (2) Pegged Orders may be entered as an Odd Lot,\22\ Round Lot \23\
or Mixed Lot; \24\ (3) Pegged Orders are not eligible to include a
Displayed \25\ instruction; (4) Pegged Orders may be executed during
the Pre-Market Session,\26\ the Market Session \27\ and the Post-Market
Session; \28\ (5) a Pegged Order may include a Book Only \29\ or Post
Only \30\ instruction; (6) to the extent an incoming Pegged Order would
be a Crossing Quotation \31\ if displayed at the
[[Page 9306]]
price at which it would be ranked in the TXSE Book, such order will
execute against interest in the TXSE Book at prices up to and including
the Locking Price \32\ and will then be cancelled by the System. A
Pegged Order resting on the TXSE Book is not eligible for execution
when a Locking Quotation \33\ or Crossing Quotation exists. In such
cases, a Pegged Order would rest on the TXSE Book and would not be
eligible for execution in the System until a Locking Quotation or
Crossing Quotation no longer exists; and (7) a Pegged Order received by
the System when the NBBO is not available will be rejected or cancelled
back to the entering User. A Pegged Order resting on the TXSE Book will
be cancelled back to the User when the NBB or NBO that the order is
pegged to is no longer available.
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\17\ As provided in Rule 11.006(o)(2), the term ``Day'' means an
instruction the User may attach to an order stating that an order to
buy or sell is designated for execution starting with the Pre-Market
Session and, if not executed, expires at the end of Regular Trading
Hours. Any Day order entered into the System before the opening for
business on the Exchange as determined pursuant to TXSE Rule 11.001
or after the closing of Regular Trading Hours will be rejected.
\18\ As provided in Rule 11.006(o)(6), the term ``SYS'' means an
instruction a User may attach to an order stating that an order to
buy or sell is designated for execution starting with the Pre-Market
Session and, if not executed, expires at the end of the Post-Market
Session. Any order with a TIF instruction of SYS entered into the
System before the opening for business or after the closing for
business on the Exchange as determined pursuant to TXSE Rule 11.001
will be rejected.
\19\ As provided in Rule 11.006(o)(1), the term ``IOC'' means an
instruction the User may attach to an order stating the order is to
be executed in whole or in part as soon as such order is received.
The portion not executed immediately on the Exchange is treated as
cancelled and is not posted to the TXSE Book.
\20\ As provided in Rule 11.006(o)(5), the term ``RHO'' means an
instruction a User may attach to an order stating that an order to
buy or sell is designated for execution only during Regular Trading
Hours which includes the Opening Auction, the Closing Auction and
IPO/Halt Auctions for TXSE-Listed securities and the Opening Process
for non-TXSE-Listed securities (as such terms are defined in TXSE
Rules 11.022 and 11.023) and, if not executed, expires at the end of
Regular Trading Hours. Any order with a TIF instruction of RHO
entered into the System after the closing of Regular Trading Hours
will be rejected. Any portion of a market RHO order will be
cancelled immediately following any auction in which it is not
executed.
\21\ As provided in Rule 11.006(o)(4), the term ``GTT'' means an
instruction the User may attach to an order specifying the time of
day at which the order expires, which is designated for execution
starting with the Pre-Market Session. Any unexecuted portion of an
order with a TIF instruction of GTT will be cancelled at the
expiration of the User's specified time, which can be no later than
the close of the Post-Market Session.
\22\ As provided in Rule 11.006(q)(2), the term ``Odd Lot''
means any amount less than a Round Lot. Orders of Odd Lot size are
only eligible to be Protected Quotations if aggregated to form a
Round Lot.
\23\ As provided in Rule 11.006(q)(1), the term ``Round Lot''
means One hundred (100) shares or any multiple thereof shall
constitute a Round Lot, unless an alternative number of shares is
established as a Round Lot by the listing exchange for the security.
Orders that are a Round Lot are eligible to be Protected Quotations.
\24\ As provided in Rule 11.006(q)(3), the term ``Mixed Lot''
means Any amount greater than a Round Lot that is not an integer
multiple of a Round Lot shall constitute a Mixed Lot. Odd Lot
portions of orders of Mixed Lot size are only eligible to be
Protected Quotations if aggregated to form a Round Lot.
\25\ As provided in Rule 11.006(c)(1), the term ``Displayed''
means an instruction the User may attach to an order stating that
the order is to be displayed by the System on the TXSE Book.
\26\ As provided in Rule 1.005(v), the term ``Pre-Market
Session'' means the time between 8:00 a.m. and 9:30 a.m. Eastern
Time.
\27\ As provided in Rule 1.005(p), the term ``Market Session''
means the time between 9:30 a.m. and 4:00 p.m. Eastern Time.
\28\ As provided in Rule 1.005(u), the term ``Post-Market
Session'' means the time between 4:00 p.m. and 5:00 p.m. Eastern
Time.
\29\ As provided in Rule 11.006(l)(1), the term ``Book Only''
means an order instruction stating that an order will be matched
against an order on the TXSE Book or posted to the TXSE Book.
\30\ As provided in Rule 11.006(l)(2), the term ``Post Only''
means an instruction that may be attached to an order that is to be
ranked and executed on the Exchange pursuant to TXSE Rule 11.008 and
TXSE Rule 11.009(a)(4) or cancelled, as appropriate, without routing
away to another trading center except that the order will not remove
liquidity from the TXSE Book, except as described below. An order
with a Post Only instruction and a Display-Price Sliding instruction
will remove contra-side liquidity from the TXSE Book if the order is
an order to buy or sell a security priced below $1.00 or if the
value of such execution when removing liquidity equals or exceeds
the value of such execution if the order instead posted to the TXSE
Book and subsequently provided liquidity, including the applicable
fees charged or rebates provided. To determine at the time of a
potential execution whether the value of such execution when
removing liquidity equals or exceeds the value of such execution if
the order instead posted to the TXSE Book and subsequently provided
liquidity, the Exchange will use the highest possible rebate paid
and highest possible fee charged for such executions on the
Exchange.
\31\ As provided in Rule 11.006(b), the term ``Crossing
Quotation'' means the display of a bid (offer) for an NMS stock at a
price that is higher (lower) than the price of an offer (bid) for
such NMS stock previously disseminated pursuant to an effective
national market system plan in violation of Rule 610(e) of
Regulation NMS. Pursuant to TXSE Rule 13.004(a), the Exchange will
use certain data feeds for the handling and execution of orders.
\32\ As provided in Rule 11.006(d), the term ``Locking Price''
means the price at which an order to buy (sell), that if displayed
by the System on the TXSE Book, upon entry into the System would be
a Locking Quotation. Pursuant to TXSE Rule 13.004(a), the Exchange
will use certain data feeds for the handling and execution of
orders.
\33\ As provided in Rule 11.006(e), the term ``Locking
Quotation'' means the display of a bid for an NMS stock at a price
that equals the price of an offer for such NMS stock previously
disseminated pursuant to an effective national market system plan,
or the display of an offer for an NMS stock at a price that equals
the price of a bid for such NMS stock previously disseminated
pursuant to an effective national market system plan in violation of
Rule 610(e) of Regulation NMS.
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The Exchange notes that the proposed Offset Peg order is very
similar to functionality either currently or previously offered by
several exchanges. Specifically, the Offset Peg order is similar to
order types offered by Nasdaq Stock Market LLC (``Nasdaq''), NYSE Arca,
Inc. (``Arca''), and Cboe BZX Exchange, Inc. (``BZX''),\34\ as well as
to order types previously offered by Investors Exchange, Inc.
(``IEX'').\35\
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\34\ See Nasdaq Rule 4703(d) (Primary Pegging with an Offset
Amount), Arca Rule 7.31-E(h)(1) (Market Pegged Order with an offset
amount), and BZX Rule 11.9(c)(8)(A) (Primary Pegged Orders with
designated Primary Offset Amounts).
\35\ See Securities Exchange Act Release No. 90197 (October 15,
2020), 85 FR 67074 (October 21, 2020) (File No. SR-IEX-2020-16)
(Notice of Filing and Immediate Effectiveness of Proposed Rule
Change to Add an Offset Peg Order Type).
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Corresponding Changes
The Exchange is also proposing to amend Rules 11.06(h) (Pegged
Orders), 11.008(a)(2)(A)(iii) (Priority of Orders),
11.020(H)(b)(7)(A)(i) (Trading Halts), 11.022(a)(8)(A)(i) (Auctions),
and 11.023(a)(2) (Opening Process for Non-TXSE-Listed Securities) to
add reference to Offset Peg orders where other Pegged Order types are
mentioned, specifically as it relates to: (i) including a reference to
an offset amount in the definition of Pegged Orders; (ii) Offset Peg
orders being subject to the same time priority as other orders with a
peg instruction, which are all ranked in priority based upon the time
that such orders were initially received by the System; \36\ (iii)
cancelling any unexecuted portion of a Pegged Order during a Regulatory
Halt; \37\ (iv) rejecting Pegged Orders entered into an IPO auction;
and (v) allowing Pegged Orders to participate in the Opening
Process,\38\ respectively.
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\36\ Because all Pegged Orders are kept in time priority based
on when they were initially received by the System, the System does
not modify Pegged Orders or generate new timestamps or order update
messages for Pegged Orders based on movements of the NBBO.
\37\ As provided in Rule 11.020H(a)(15), the term ``Regulatory
Halt'' has the same meaning as in the CTA Plan.
\38\ See Rule 11.023.
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Copycat/Cleanup Changes
Finally, the Exchange is proposing to amend the description of
``Pegged Order'' under Rule 11.006(h) to describe a Pegged Order as
``An order that is automatically adjusted by the System in response to
changes in the NBBO,'' instead of ``An order that automatically re-
prices in response to changes in the NBBO.'' The Exchange believes that
this language better reflects system functionality and is generally
consistent with the way that other exchanges describe pegged
orders.\39\
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\39\ See, e.g. BZX Rule 11.9(c)(8).
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The Exchange is also proposing to add reference to Primary Peg
Orders in Rule 11.023(a)(2). The reference was unintentionally excluded
and adding it makes clear that Primary Peg Orders will be treated like
all Pegged Orders in the Opening Process for Non-TXSE-Listed
Securities.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\40\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\41\ in particular, in that it
is designed to promote just and equitable principles of trade, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system, and, in general, to protect
investors and the public interest. Specifically, the Exchange believes
that the proposed rule change is consistent with the protection of
investors and the public interest because it is designed to increase
competition among execution venues by providing an additional Pegged
Order type that market participants can use to trade at an offset to
the primary quote, as described above, and thereby enable the Exchange
to better compete with order types on other national securities
exchanges that offer similar features to market participants.
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\40\ 15 U.S.C. 78f(b).
\41\ 15 U.S.C. 78f(b)(5).
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Further, the Exchange believes that the proposal is consistent with
the protection of investors and the public interest in that the Offset
Peg order type would provide additional flexibility to market
participants in their use of Pegged Orders. As described above, the
Exchange already offers three types of Pegged Orders--Primary Peg,
Midpoint Peg, and Market Peg. As proposed, the Offset Peg order would
function in a similar manner but provide flexibility to market
participants to specify an offset to the primary quote. Such
functionality could be used for a number of purposes, including
providing Users with the ability to post orders at more precise
permissible price levels than are available with the Exchange's current
Pegged Order types. Although broker-dealers could implement similar
functionality on their own by consuming market data feeds and sending
limit orders at prices that would accomplish the same outcome,
implementing this functionality through an exchange order type will be
much more efficient (fewer orders entered and cancelled every time the
NBBO moves) and ensures that it is widely available to market
participants on a fair and non-discriminatory basis. At the same time,
the Offset Peg order type would be offered on a purely voluntary basis,
and with flexibility for Users to choose the amount of any offset,
thereby providing flexibility to continue using current Pegged Order
types without a User specified offset and to choose different offsets
based on a User's specific needs. The Exchange does not believe that
providing flexibility to Users to select the amount of any offset
raises any significant or novel concerns, since similar offset
functionality is already available on other national securities
exchanges, as discussed above.
In addition, the Exchange believes that it is consistent with the
Act to round the price of a buy order down and a sell order up to the
nearest permissible increment if the offset amount would result in the
price of an Offset Peg order being in an increment smaller than
specified in Rule 11.006(g). Rounding assures that the Exchange is
compliant with Regulation NMS Rule 612 \42\ and
[[Page 9307]]
TXSE Rule 11.006(g). Moreover, this approach is generally consistent
with the way other national securities exchanges handle pegged
orders.\43\
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\42\ See 17 CFR 242.612 and FAQs 8, 1, and 2 in Division of
Market Regulation: Responses to Frequently Asked Questions
Concerning Rule 612 (Minimum Pricing Increment) of Regulation NMS,
available at <a href="https://www.sec.gov/divisions/marketreg/subpenny612faq.htm">https://www.sec.gov/divisions/marketreg/subpenny612faq.htm</a> which provides that although exchanges (and
broker-dealers) may not accept and round orders in NMS stocks
explicitly priced in sub-penny increments (FAQs 8 and 1), they may
accept such orders when the order is not ``explicitly'' priced in an
impermissible sub-penny increment, meaning that a calculation must
be performed to obtain the price of the order, in which case the
exchange or broker-dealer may round the price of the stock to
determine the ``actual explicit price for the order.'' (FAQ 2). The
Exchange believes that Offset Peg orders would not be explicitly
priced in sub-penny increments even if the offset amount specified
is in a sub-penny increment because the Exchange would need to
perform a calculation to obtain the price of the order by applying
the offset amount to the NBB or NBO as applicable. Accordingly, the
Exchange believes that rounding as proposed is consistent with Rule
612 under Regulation NMS and relevant FAQs, which provide that
exchanges (and broker-dealers) may not accept and round orders in
NMS stocks explicitly priced in sub-penny increments (FAQs 8 and 1),
except for when the order is not ``explicitly'' priced in an
impermissible sub-penny increment, in which case the exchange may
round the price of the stock to determine the ``actual explicit
price for the order,'' (FAQ 2).
\43\ See, e.g. Cboe US Equities FIX Specification (Version
2.9.51) describing treatment of Tag 211 regarding ``Pegged
Difference'' available at <a href="https://cdn.cboe.com/resources/membership/Cboe_US_Equities_FIX_Specification.pdf">https://cdn.cboe.com/resources/membership/Cboe_US_Equities_FIX_Specification.pdf</a>.
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The Exchange also believes that the corresponding changes to align
Offset Peg treatment with other Pegged Orders as it relates to the
definition of Pegged Orders, priority, treatment in a regulatory halt,
treatment in an IPO auction, and participation in the Opening Process,
are consistent with the Act in that they are consistent with the way
that the Exchange treats other Pegged Orders already available on the
Exchange and are generally consistent with how comparable order types
are treated on other national securities exchanges.
The Exchange also believes that the copycat change to its
description of Pegged Orders is consistent with the Act because the
language better reflects system functionality and is generally
consistent with the way that other exchanges describe pegged
orders.\44\
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\44\ See, e.g., BZX Rule 11.9(c)(8).
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Finally, the Exchange believes that adding reference to Primary Peg
Orders in Rule 11.023(a)(2). The reference was unintentionally excluded
and adding it makes clear that Primary Peg Orders will be treated like
all Pegged Orders in the Opening Process for Non-TXSE-Listed
Securities.
For these reasons, the Exchange believes that the proposed changes
do not raise any new or novel material issues that have not already
been considered by the Commission in connection with existing order
types offered by the Exchange and other national securities exchanges.
(B) Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposal will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. To the contrary, the proposal
is a competitive response to similar order types available on other
exchanges.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Competing
exchanges have and can continue to adopt similar order types, as noted
above.
The Exchange also does not believe that the proposed rule change
will impose any burden on intramarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act. All Members
would be eligible to use an Offset Peg order on the same terms.
(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants or Others
The Exchange has neither solicited nor received written comments on
the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A)(iii) of the Act \45\ and Rule
19b-4(f)(6) \46\ thereunder.
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\45\ 15 U.S.C. 78s(b)(3)(A)(iii).
\46\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposal is
consistent with the Act. Comments may be submitted by any of the
following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#5220273e377f313d3f3f373c2621122137317c353d24"><span class="__cf_email__" data-cfemail="552720393078363a3838303b2126152630367b323a23">[email protected]</span></a>. Please include
File No. SR-TXSE-2026-001 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 No. SR-TXSE-2026-001. 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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>).
Copies of the filing will be available for inspection and copying at
the principal office of the Exchange. 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 SR-TXSE-2026-001 and should be submitted on or
before March 18, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\47\
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\47\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03703 Filed 2-24-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 25, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.