Texas Stock Exchange's 'Rodeo II' Bribes Firms with Stock Units
Published Date: 10/14/2026
Notice
Summary
Texas Stock Exchange (TXSE) is rolling out a cool new incentive program called Rodeo II! The first 10 companies that list or dual-list their stocks on TXSE by December 31, 2026, will earn special restricted stock units from TXSE’s parent company, TXSE Group. These rewards will unlock over two years, encouraging companies to join TXSE and grow together.
Analyzed Economic Effects
8 provisions identified: 6 benefits, 2 costs, 0 mixed.
First 10 Listings Receive 100,000 RSUs
If your company is one of the first ten qualifying issuers to transfer a primary listing to TXSE or dually list on TXSE by December 31, 2026, it will receive 100,000 restricted stock units (Rodeo Units) in TXSE Group within 60 days after the listing is completed. The program launched October 7, 2026 and qualifying listings beginning October 5, 2026 are eligible.
Who Can Qualify — Eligible Issuer Types
To qualify, an issuer must be U.S.-domiciled and list one of these equity types on TXSE: (a) common stock of a corporation (including operating companies or business development companies), (b) master limited partnership units, or (c) common shares of a REIT. Qualifying listings completed beginning on October 5, 2026 are eligible.
Market Cap Thresholds for Awards
To receive an award, primary-listing issuers must have a trailing 90-trading-day average market capitalization of at least $3.5 billion at the time of the primary listing transfer (or at the end of the first trading day on TXSE). For dual listings, the issuer must have a market capitalization of at least $100 billion.
Two-Year Vesting—Stay Listed to Get Full Award
Rodeo Units vest in two tranches: 50% on the first anniversary of continuous listing on TXSE and 50% on the second anniversary, provided the issuer remains listed on TXSE as of each anniversary. If the issuer does not remain listed, the corresponding tranche does not vest.
Ownership Limits and Total Program Stake
Founding Partners' equity interests from Rodeo II are subject to TXSE Group ownership limits in the TXSE Group Stockholders' Agreement and Certificate of Formation (for example, provisions referenced that limit a stockholder or member to 20% and persons to 40%). If ten awards are granted and fully vest, those awards would represent 2.94% of fully diluted TXSE Group shares as of June 30, 2026.
Exchange Says Listings Will Improve Market Liquidity
The Exchange states that attracting and retaining qualifying listings through Rodeo II is intended to increase liquidity and transaction volume on TXSE, which the Exchange says will benefit all market participants by providing tighter quoting and better prices on the Exchange.
Certain Issuers Are Ineligible
Some issuer types are explicitly ineligible for Rodeo II, including: special purpose acquisition companies (SPACs), exchange traded products & funds, closed-end funds (other than BDCs), structured products, royalty trusts, and issuers domiciled outside the United States. These issuer types cannot receive the RSU awards under this Program.
Program Cap and Possible Expansion to 15 Awards
Rodeo II is limited to the first ten Founding Partners through December 31, 2026, but if there are more than ten Founding Partners on or before December 31, 2026, TXSE may increase the total number of restricted share awards to 15 by posting notice on its website; any increase would follow the same requirements as the first ten awards.
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