The Texas Stock Exchange has reopened applications for a programme that hands members warrants over its own parent, and the vesting target is measured against the whole American market rather than against the exchange
Two hundred and fifty thousand dollars buys a ticket.
The Texas Stock Exchange filed a rule change with the Securities and Exchange Commission on 3 August, effective on filing, adding four tickets to what it calls the Rodeo Program and reopening the application window that closed in May. A ticket is redeemable for warrants over 100,000 shares of TXSE Group Inc, the exchange's parent, and it vests in pieces across four quarters if the holder trades enough. The notice went out on 6 August and reaches the Federal Register on Tuesday.
The window is short. Documentation has to be executed by 14 August and the money tendered by 24 August, each extendable by the exchange by up to 45 days.
What the target is measured against
Here is the part worth reading twice. Vesting turns on a Participant hitting a set percentage of Total Consolidated Volume, and the filing defines that term in a footnote as the volume reported by all exchanges and trade reporting facilities to a consolidated transaction reporting plan during the period. The denominator is the entire American equity market. It is not the exchange's own volume.
The four quarters ratchet:
| Measurement period | Target | Shares vesting |
|---|---|---|
| 1 September to 30 November 2026 | 0.025% of consolidated volume | 10,000 |
| 1 December 2026 to 26 February 2027 | 0.05% | 20,000 |
| 1 March to 31 May 2027 | 0.075% | 30,000 |
| 1 June to 31 August 2027 | 0.125% | 40,000 |
A Participant that misses a target but clears half of it is eligible for partial vesting. A Participant that misses by more gets nothing for that quarter.
The strike price is a competition
Vesting decides whether you get warrants. A separate mechanism decides what you pay to exercise them.
Every firm that fully vests in a quarter is ranked against the others on something the filing calls Multiplier Adjusted Volume, which is total shares traded on the exchange with certain transaction types counted as a multiple of the shares actually traded. The higher a firm ranks, the lower its exercise price. The filing is explicit that this ranking touches the exercise price only and has no effect on vesting or on the target.
Who can take one
A Participant has to be an approved Member in good standing, a broker-dealer registered under Section 15 of the Exchange Act, and an accredited investor as Regulation D defines the term. Good standing is defined narrowly, as not being delinquent on exchange fees or charges and not being suspended or barred.
The second limb of Monday's filing widens that. Sponsored Participants, meaning firms trading through a Sponsoring Member rather than as members themselves, may now enter as joint participants alongside their sponsor. The volume targets have to be met by the Sponsored Participant alone, and the ticket and the warrants are issued to the Sponsored Participant alone. The exchange says it modelled this on a filing 24X National Exchange made in May, SR-24X-2026-16, which amended that exchange's own warrant performance incentive program the same way.
The money and the clock
The $250,000 is not simply a fee. It applies against connectivity, market data and membership fees at the exchange, and the filing says expressly that it does not apply against transaction fees.
The Rodeo Period runs from 1 September 2026 to the close of business on 31 August 2027, and the exchange may push the start back by circular given at least two weeks ahead, by no more than six months. The original programme was capped at 20 tickets. These four are on top, the exchange says it will not offer more than four however much demand there is, and no firm may hold more than three counting the first window.
The change took effect on filing under Section 19(b)(3)(A) and Rule 19b-4(f). The Commission may summarily suspend it within 60 days of the filing, and if it does, it opens proceedings on whether to approve or disapprove. Comments are due 21 days after publication, which is 1 September.
