Texas Stock Exchange Files to Add CEFs, Exempt Funds from Annual Meeting Requirements

The Texas Stock Exchange (TSEX) recently filed with the Securities and Exchange Commission (SEC) to add closed-end funds to the TSEX option of listed products. As part of this filing, TSEX asked the SEC to approve listing standards similar to that of the Chicago Board Options Exchange (Cboe) BZE Exchange. In addition, TSEX’s proposal would remove the annual shareholder meeting requirement for closed-end funds. TSEX argues that the Investment Company Act does not require annual meetings, and that other listed funds like ETFs do not have annual meeting requirements. Previously, NYSE and Cboe petitioned the SEC to remove the annual shareholder meeting requirement as some in the fund industry believe it has become a tool activist shareholders use to overtake a fund. TXSE secured approval from the SEC to operate as a national securities exchange in October.

Click here to view the TSEX filing.