2026-11682NoticeWallet

Texas Exchange Tweaks Proxy Rules for Uninstructed Shares

Published Date: 6/11/2026

Notice

Summary

The Texas Stock Exchange is changing its rules to make sure members vote uninstructed shares fairly by matching how other shareholders vote. This affects anyone holding TXSE-listed stocks and aims to make proxy voting more transparent and balanced. The new rule kicks in soon and could impact how shareholder meetings run, but it doesn’t involve extra costs.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Uniform rule may change meeting outcomes

The rule replaces the current routine/non-routine framework so every matter on a ballot is treated the same way; this change can affect quorum determinations and approval thresholds because uninstructed shares will be represented and allocated based on participating beneficial-owner instructions rather than proposal-dependent broker treatment. The Exchange says this removes proposal-dependent effects that can raise effective approval thresholds or leave shares unrepresented.

Brokers lose discretionary voting

If you hold TXSE-listed shares, brokers (Members) would no longer vote uninstructed shares using their own judgment or house policies. Instead, the Exchange requires a formula-driven, mandatory proportional allocation tied only to instructions submitted by participating beneficial owners for TXSE-listed securities.

Uninstructed shares allocated proportionally

For each proposal at a TXSE-listed company, uninstructed shares must be cast FOR, AGAINST, and ABSTAIN in the same proportion as the aggregate voting instructions the Member received from beneficial owners as of the applicable "Calculation Date." Any fractional share allocations are rounded down to whole shares and any remainder shares are allocated to ABSTAIN (or WITHHOLD where ABSTAIN is not available).

Fiduciary and ERISA accounts excluded

The proportional allocation requirement does not apply to shares held or voted by a Member acting as an executor, administrator, guardian, trustee, or similar fiduciary, nor to shares voted by a named ERISA Plan investment manager or a designated investment adviser. Shares excluded in this way are also excluded from the calculation of the instructed vote distribution.

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Key Dates

Published Date
6/11/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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