TEXAS CAPITAL BANCSHARES announced on Tuesday that two of its exchange-traded funds will designate the Texas Stock Exchange (TXSE) as their primary trading venue, effective September 16, contingent on regulatory approvals. The move would mark the first primary listings for TXSE.
Both ETFs currently trade on NYSE Arca, the exchange platform within the New York Stock Exchange group. Texas Capital Bancshares said that the funds' ticker symbols and their investment approaches will remain the same despite the change in primary venue.
A primary listing establishes TXSE as the principal marketplace for the ETFs' trading activity, increasing the exchange's role in how those securities are traded. Prior to this decision, TXSE had drawn interest from companies seeking secondary listings, but Texas Capital Bancshares' action would represent the first instance in which the exchange is named the primary trading venue for ETFs.
TXSE counts several large financial-market participants among its backers, including BlackRock, Citadel Securities and Charles Schwab. The exchange commenced full trading operations in July and has stated plans to begin accepting initial public offerings next year.
The effective date for the primary listings is scheduled for September 16, but the change remains subject to the completion of regulatory procedures. Texas Capital Bancshares emphasized that aside from the shift in primary venue, the funds' identifying symbols and investment strategies will not be altered in connection with the move.
Because the Texas Stock Exchange only began full operations in July, the September listing - if approved - will represent an early material step in the exchange's effort to expand from secondary listings to primary listings for ETFs and, eventually, to accept IPOs in the following year. The company and the exchange will proceed through the applicable regulatory review processes before the September date arrives.
Sectors affected: Financial services, capital markets, and ETF markets.