Texas Stock Exchange Opens Doors to Closed-End Fund Listings
Published Date: 5/8/2026
Notice
Summary
The Texas Stock Exchange wants to start listing and trading Closed-End Funds, which are special investment funds. They’re setting clear rules for how these funds can join and stay on the exchange, based on standards from another big exchange. This change could open new opportunities for investors and fund managers, with no immediate cost impact announced, and it’s up for public comment now.
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Analyzed Economic Effects
7 provisions identified: 4 benefits, 3 costs, 0 mixed.
Exchange Will List Closed‑End Funds
The Texas Stock Exchange (TXSE) proposes rules to let Closed‑End Funds list and trade on the exchange. To qualify an individual fund must meet numeric thresholds such as at least 500,000 publicly distributed shares with at least 800 Public Shareholders (or 1,000,000 shares with 400 Public Shareholders), at least $20 million market value or net assets, a $4 minimum bid price, and at least four registered Market Makers.
Interval Funds Must Repurchase Quarterly
Exchange‑listed Interval Funds would have to offer to repurchase shares at net asset value at least every three months. This is stricter than Rule 23c-3(a)(1), which can allow repurchase intervals of three, six, or twelve months.
Delisting Triggers for Continued Listing
A Closed‑End Fund may face trading suspension and delisting if it fails continued listing tests such as market value or net assets below $5,000,000 for more than 60 consecutive days, Public Distribution under 200,000 shares, fewer than 300 Public Shareholders, Public Distribution market value below $1,000,000 for more than 90 days, a bid price below $1.00, or fewer than four registered Market Makers.
Group Listing Standards for Fund Families
TXSE would allow a group of Closed‑End Funds managed by affiliated advisers to list together if the group has at least $75 million in combined market value or net assets, with an average of at least $15 million per fund and each fund at least $10 million. Each fund in the group must also meet share, bid‑price, and market‑maker minimums similar to the individual standard.
Closed‑End Funds Exempt From Annual Meeting Rule
TXSE proposes to amend its rules so that Closed‑End Funds would not be subject to the exchange's Rule 16.408(a) annual shareholder meeting requirement. If an issuer also lists operating common stock or voting preferred stock, the issuer must still hold annual meetings for those securities.
Trading Hours and Surveillance for New Listings
TXSE will treat Closed‑End Funds as equity securities and allow trading from 8:00 a.m. to 5:00 p.m. Eastern Time (Pre‑Market 8:00–9:30 a.m., Regular 9:30 a.m.–4:00 p.m., Post‑Market 4:00–5:00 p.m.). Trading will be subject to existing trading halt and surveillance rules.
Listing Fees Will Be Proposed Separately
The Exchange plans to submit a separate rule change to set listing fees for Closed‑End Funds before this proposal becomes operational. No fee amounts are specified in this filing.
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