Texas Stock Exchange Launches Rodeo Rewards for Busy Traders
Published Date: 3/31/2026
Notice
Summary
The Texas Stock Exchange is launching the Rodeo Program, a cool new incentive where members who pay a prepayment fee get special tickets to buy shares in the parent company if trading hits certain goals. This program kicks off on September 1, 2026, and runs for a year, encouraging more trading and rewarding members with potential ownership perks. It’s a win-win for the Exchange and its members aiming to boost market action!
Analyzed Economic Effects
8 provisions identified: 3 benefits, 2 costs, 3 mixed.
$250,000 Up‑Front Participation Fee
To join the Rodeo Program you must prepay a $250,000 fee by May 15, 2026 (and submit required documentation by May 1, 2026). Paying this fee is required to receive a ticket that can be redeemed for warrants tied to TXSE Group stock.
Warrants and Vesting Schedule
Each ticket redeems for warrants equal to 100,000 shares of TXSE Group common stock that vest across four Measurement Periods: 10,000 shares (9/1/26–11/30/26), 20,000 shares (12/1/26–2/26/27), 30,000 shares (3/1/27–5/31/27), and 40,000 shares (6/1/27–8/31/27). If 20 tickets are issued the Program could issue warrants representing 2,000,000 shares (6% of fully diluted outstanding stock).
How the Prepayment Fee Is Applied and Expiration
The $250,000 Prepayment Fee is applied automatically to monthly Rodeo Exchange Fees (connectivity, market data, membership fees) starting immediately upon payment; transaction fees are excluded. An unused single Prepayment Fee expires 30 months after the start of Measurement Period 1; each additional Prepayment Fee submitted extends expiry by 24 months (two fees = 54 months, three fees = 78 months).
Performance Targets and Partial Vesting Rules
Vesting requires meeting per‑ticket Target Performance as a percentage of Total Consolidated Volume (TCV): 0.025% (Measurement Period 1), 0.05% (Period 2), 0.075% (Period 3), and 0.125% (Period 4). Achieving 50–74.99% of a target yields 50% vesting; 75–99.99% yields 75% vesting; below 50% yields no vesting. Partially vested warrants are not eligible for lower exercise prices and have an exercise price of $20.
Exercise Price Competition and Multipliers
Fully vesting participants are ranked by Multiplier Adjusted Volume to receive exercise prices: rank 1 = $1, rank 2 = $3, rank 3 = $5, rank 4 = $7, rank 5 = $9, rank 6 = $11, rank 7 = $13, rank 8 = $15, rank 9 = $17, all others = $20. Volume multipliers include Intraspread 2x, Auction 10x, Add Displayed 1.2x, and ELS 2x (multipliers can stack for transactions qualifying for multiple multipliers).
Participation Eligibility and Timing Deadlines
To participate you must be an approved TXSE Member and registered broker‑dealer, qualify as an "accredited investor," execute required documentation by May 1, 2026, and tender the Prepayment Fee by May 15, 2026.
Program Caps, Allocation, and Refund if Under‑Subscribed
The Rodeo Program will issue between 3 and 20 tickets in total; each Member may receive up to three tickets. If fewer than three tickets would be issued, the Exchange will not operate the Program and will return Prepayment Fees. If demand exceeds 20 tickets, the Exchange may reduce allocations per Participant or increase total tickets at its discretion.
Market Liquidity and Quality Are Intended Outcomes
The Exchange states the Rodeo Program is designed to encourage Members to provide liquidity and increase trading volume, which the Exchange says will provide greater liquidity, tighter spreads, and enhanced price discovery for other market participants.
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