Self-Regulatory Organizations; Texas Stock Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the TXSE Fee Schedule To Modify the Transaction Fee Applicable to Securities Priced at or Above $1.00 That Remove Displayed Liquidity From the TXSE Book

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<title>Federal Register, Volume 91 Issue 197 (Wednesday, October 14, 2026)</title>
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[Federal Register Volume 91, Number 197 (Wednesday, October 14, 2026)]
[Notices]
[Pages 65283-65284]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20923]



[[Page 65283]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106639; File No. SR-TXSE-2026-035]


Self-Regulatory Organizations; Texas Stock Exchange LLC; Notice 
of Filing and Immediate Effectiveness of a Proposed Rule Change To 
Amend the TXSE Fee Schedule To Modify the Transaction Fee Applicable to 
Securities Priced at or Above $1.00 That Remove Displayed Liquidity 
From the TXSE Book

October 8, 2026.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on October 1, 2026, Texas Stock Exchange LLC (``Exchange'' or ``TXSE'') 
filed with the Securities and Exchange Commission (``Commission'') the 
proposed rule change as described in Items I, II, and III below, which 
Items have been prepared by the Exchange. 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.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange is filing with the Securities and Exchange Commission 
(``Commission'') a proposed rule change to amend the TXSE Fee Schedule 
to lower the transaction fee applicable to securities priced at or 
above $1.00 that remove displayed liquidity from the TXSE Book. The 
Exchange proposes to implement the rule change upon commencement of its 
operations as a national securities exchange.
    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://www.txse.com/regulations/rules-filings">https://www.txse.com/regulations/rules-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 Section A (Transaction Fees) of the 
TXSE Fee Schedule to reduce the fee for executions of orders that (i) 
are displayed on the TXSE Book and (ii) remove liquidity from the 
Exchange.\3\ Currently, TXSE charges a fee of $0.0030 per share for 
these executions in securities priced at or above $1.00 per share. The 
Exchange now proposes to reduce this fee to $0.0029 per share and 
implement the change on October 1, 2026.
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    \3\ This pricing is referred to as ``Remove displayed 
liquidity'' on the TXSE Fee Schedule.
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    The proposed reduced fee for executions in securities priced at or 
above $1.00 per share that remove displayed liquidity is consistent 
with the fees charged by other exchanges for similar executions and the 
Exchange believes that reducing the fee for these transactions will 
encourage Members to increase the liquidity-removing orders they submit 
to the Exchange and result in increased interactions with displayed 
liquidity on the TXSE Book.
2. Statutory Basis
    The Exchange believes the proposed rule change is consistent with 
the requirements of the Exchange Act. The Exchange believes that the 
proposed fee is consistent with the objectives of Section 6(b)(5) of 
the Act \4\ in that they are designed to promote just and equitable 
principles of trade, to foster cooperation and coordination with 
persons engaged in regulating, clearing, settling, processing 
information with respect to, and facilitating transactions in 
securities, to remove impediments to and perfect the mechanism of a 
free and open market and national market system, and, in general, to 
protect investors and the public interest, and, particularly, are not 
designed to permit unfair discrimination between customers, issuers, 
brokers, or dealers. The Exchange also believes that the proposed rule 
change is consistent with the provisions of Section 6(b)(4) of the 
Act,\5\ in that it is designed to provide for the equitable allocation 
of reasonable dues, fees, and other charges among its Members and other 
persons using its facilities.
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    \4\ 15 U.S.C. 78f(b)(6).
    \5\ 15 U.S.C. 78f(b)(4).
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    The Exchange operates in a highly competitive market in which 
market participants can readily direct order flow to competing venues 
if they deem fee levels at a particular venue to be excessive or 
incentives to be insufficient. The Exchange believes that the proposed 
fee reflects a simple and competitive pricing change designed to 
incentivize market participants to direct their order flow to the 
Exchange, which the Exchange believes would promote price discovery and 
price formation and deepen liquidity that is subject to the Exchange's 
transparency, regulation, and oversight as an exchange, thereby 
enhancing market quality to the benefit of all Members and investors. 
The Commission and the courts have repeatedly expressed their 
preference for competition over regulatory intervention in determining 
prices, products, and services in the securities markets. In Regulation 
NMS, while adopting a series of steps to improve the current market 
model, the Commission highlighted the importance of market forces in 
determining prices and self-regulatory organization revenues, and also 
recognized that current regulation of the market system ``has been 
remarkably successful in promoting market competition in its broader 
forms that are most important to investors and listed companies.\6\
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    \6\ Securities Exchange Act Release No. 51808 (June 9, 2005), 70 
FR 37496, 37499 (June 29, 2005) (``Regulation NMS Adopting 
Release'').
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    The Exchange believes that it is appropriate, reasonable, and 
consistent with the Act to reduce and now charge a standard fee of 
$0.0029 per share for executions of orders that remove liquidity from 
the TXSE Book in securities priced at or above $1.00 per share because 
it is comparable to the transaction fee charged by another exchange to 
remove liquidity.\7\ The Exchange further believes that this fee is 
equitably allocated and not unfairly discriminatory because it applies 
equally to all Members and is designed to facilitate increased activity 
on the activity on the Exchange to the benefit of all Members by 
providing more trading opportunities and promoting price discovery.
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    \7\ For example, the MEMX Fee Schedule assess fees to remove 
liquidity for securities at or above $1.00 that range from $0.0029-
$0.0030 per share; see <a href="https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/">https://info.memxtrading.com/equities-trading-resources/us-equities-fee-schedule/</a>.

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[[Page 65284]]

B. Self-Regulatory Organization's Statement on Burden on Competition

    Section 6(b)(8) of the Act \8\ requires that the Exchange's rules 
not impose any burden on competition that is not necessary or 
appropriate in furtherance of the purpose of the Exchange Act. The 
Exchange does not believe that the proposed rule change will result in 
any burden on competition that is not necessary or appropriate in 
furtherance of the purposes of the Act. Rather, as discussed above, the 
Exchange believes that the proposed fee change would encourage the 
submission of additional order flow to a public exchange, thereby 
promoting market depth, execution incentives, and enhanced execution 
opportunities, as well as price discovery and transparency for all 
Members. As a result, the Exchange believes that the proposed change 
furthers the Commission's goal in adopting Regulation NMS of fostering 
competition among orders, which promotes ``more efficient pricing of 
individual stocks for all types of orders, large and small.'' \9\
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    \8\ 15 U.S.C. 78f(b)(8).
    \9\ Regulation NMS Adopting Release at 37499.
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    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. To the contrary, 
the Exchange believes that the proposed fee change will increase 
competition and is intended to draw volume to the Exchange. The 
Exchange believes that the ever-shifting market share among the 
exchanges from month to month demonstrates that market participants can 
shift order flow or reduce use of certain categories of products in 
response to new or different pricing structures being introduced into 
the market. Accordingly, competitive forces constrain the Exchange's 
transaction fees, and market participants can readily trade on 
competing venues if they deem pricing levels at those other venues to 
be more favorable. Although this fee change is intended to attract 
liquidity to the Exchange, most other exchanges in operation today 
already offer multiple incentives to their participants, including 
tiered pricing that provides discounted executions, and other exchanges 
will be able to modify such incentives in order to compete with the 
Exchange. Accordingly, with respect to a participant deciding to submit 
an order to remove liquidity, there are multiple exchanges that will 
continue to be competitively priced for such orders when compared to 
the Exchange's pricing. Further, while pricing incentives can cause 
shifts of liquidity between trading centers, market participants make 
determinations on where to provide liquidity or route orders to take 
liquidity based on factors other than pricing, including execution 
quality, technology, functionality, and other considerations. 
Consequently, the Exchange believes that the degree to which its fees 
could impose any burden on competition is extremely limited and does 
not believe that such fees would burden competition of Members or 
competing venues in a manner that is not necessary or appropriate in 
furtherance of the purposes of the Act.
    The Exchange 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 because the 
proposed fee would apply equally to all Members. The proposed fee 
change is intended to encourage market participants to add liquidity to 
the Exchange by providing a competitive rate charged for removing 
liquidity, which the Exchange believes will help to encourage Members 
to send orders to the Exchange to the benefit of all Exchange 
participants. As the proposed rates are equally applicable to all 
market participants, the Exchange does not believe there is any burden 
on intramarket competition.

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Exchange Act \10\ and Rule 19b-4(f)(2) 
thereunder,\11\ because it establishes or changes a due, or fee.
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    \10\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \11\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of the proposed rule 
change, the Commission summarily may temporarily suspend the rule 
change if it appears to the Commission that the action is necessary or 
appropriate in the public interest, for the protection of investors, or 
would otherwise further the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule 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 proposed rule 
change 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="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#e290978e87cf818d8f8f878c9691a2918781cc858d94"><span class="__cf_email__" data-cfemail="750700191058161a1818101b0106350610165b121a03">[email&#160;protected]</span></a>. Please include 
file number SR-TXSE-2026-035 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 SR-TXSE-2026-035. 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/sro.shtml">https://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-2026-035 and should be submitted on 
or before November 4, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\12\
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    \12\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20923 Filed 10-13-26; 8:45 am]
BILLING CODE 8011-01-P


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