TXSE (pronounced TEX-see) announced on April 4, 2025 that its Form 1 registration is now public, putting it one step closer to Y'all Street. The announcement touted its proprietary "matching engine" that it believes will make it stronger, better and faster than the rest. It also included a not-so-subtle dig at NYSE and Nasdaq by stating that many of the companies that are currently publicly listed would not meet TXSE's listing standards.
Noticeably absent from the announcement was any mention of corporate governance standards – but have no fear, they are outlined in TXSE's Form 1. At first blush, TXSE's governance standards seem very similar to NYSE and Nasdaq, focusing on things such as director independence, related party transactions, financial literacy and the like. At a high level, the governance requirements of each exchange are very similar to the SEC's.
Although skeptics may have anticipated that TXSE's governance standards would belong in the wild, wild west, I'm not surprised to see that they are seemingly down the middle of the fairway. After all, any company that is listed on an exchange also has to comply with the SEC's governance requirements. So while imposing governance requirements that generally align with the SEC's standards doesn't create too much of a burden, does it provide value? It begs the broader question as to whether stock exchanges should be in the business of regulating governance in the first place, but that's a question for another day.
The TXSE commitment to becoming a world-class exchange starts with our decision to create a proprietary matching engine from the ground up. . . [The exchange] incorporates the latest hardware and software, delivering best-in-class speed and performance. At the same time, we are ensuring our exchange platform and services will be flexible and scalable, allowing TXSE to meet our customers' needs in the rapidly evolving regulatory and trading environment. We intend to serve a diverse ecosystem of users, including institutions, agency and retail brokers, and professional traders of all types. . . . We are proud that our listings ruleset outlines some of the highest quantitative standards in the industry. In fact, many companies that are publicly traded today would not meet the requirements for continued listing on TXSE.
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