As companies consider what the Texas Stock Exchange brings to the US listings market, Blessing Adeyeye and Evelyn Li break down where its rules mirror NYSE and Nasdaq and where important differences emerge.
TXSE’s listing and corporate governance framework largely follows familiar requirements, including board and committee independence, audit committee requirements and shareholder approval rules. But companies considering a primary or dual listing should also be aware of several distinctions, including TXSE’s mandatory confidential pre-application review, single listing tier and proposed approach to voting uninstructed broker-held shares.
Blessing and Evelyn compare the three exchanges’ listing standards and governance requirements, with a closer look at considerations for dual-listed companies and foreign private issuers. They also examine TXSE’s proposed proportional voting approach for uninstructed broker shares, which would represent a departure from longstanding NYSE and Nasdaq practices.
For companies evaluating TXSE, understanding these differences, and how they could affect shareholder voting, ongoing compliance and listing strategy, will be an important part of determining whether “Y’all Street” is the right fit.