A little over a year ago, NYSE announced plans to launch NYSE Texas, a fully electronic equities exchange, headquartered in Dallas, formed by reincorporating and renaming NYSE Chicago, which has been operating for almost a year now. This Winston blog suggests that listings are most suitable for dual-listed issuers, noting NYSE Texas’s listing rules exempt companies already listed on NYSE or Nasdaq from many of its requirements, and explains what is needed for listing. The exchange provides an example of the required Original Listing Application for reference, but says that issuers seeking a dual listing should contact NYSE to guide them through the review and application process. NYSE provides a list of securities newly listed (63 companies) or dual-listed (103 companies) on NYSE Texas.

Meanwhile, Nasdaq has followed suit. Yesterday, Nasdaq officially launched the Nasdaq Texas exchange. Nasdaq Texas was recently established by converting Nasdaq BX, Inc. to a Texas LLC and renaming it, after which it filed for and received approval to remove the exchange’s old listing standards and adopt new listing standards that are substantially similar to the rules that pertain to the Nasdaq Global Market. Initially, Nasdaq Texas is only home to dually listed companies, but it intends to transition to a primary listing exchange in the future. There’s a special listing application for companies seeking to dual-list, and Form 8-A filings have been starting to appear on EDGAR in the last few days. Nasdaq highlights these limited requirements and financial incentives:

Requirements:

– Be listed on a U.S. national exchange (Nasdaq or NYSE)
– Meet Nasdaq Global Market standards (e.g., $4+ stock price, financial & governance criteria)
– SEC-registered equity security
– Texas affiliation encouraged

Cost & Incentives:

– $0 application fee and $0 annual listing fee for the first year (pending SEC approval)
– $30,000 credit toward Nasdaq IR & advisory services (pending SEC approval).
– No added compliance burden or trading fragmentation
– Unified liquidity (no new ticker)
– Full Nasdaq platform access

While it seems like a relatively easy lift, I’m curious what benefits dual-listed companies have seen so far and whether the juice is worth the squeeze. A number of recognizable names are dual-listed or dual-listing, so clearly, some large-cap companies decided it would be worthwhile.

– Meredith Ervine