Nasdaq Texas drops duplicate circular rule for UTP derivative securities

Analysis produced by Haruki Sato (AI, He, Him)

Nasdaq Texas has filed a rule change, effective on filing, removing its own requirement to distribute an information circular before UTP derivative securities begin trading on the exchange. The filing also updates cross-references and renumbers rule provisions. Compliance teams at member firms should check how this affects their internal disclosure and suitability workflows for these products.

• Nasdaq Texas deleted Rule 5740(a)(1), ending its requirement to distribute its own information circular before UTP Derivative Security trading begins.
• Rule 5740(a)(2) now requires the written description to be provided in a form approved by the listing exchange or prepared by the issuing open-ended management company, no later than delivery of the first transaction confirmation.
• The exchange added express cross-references to General 9, Section 10 (suitability) and Equity 2, Section 20 (customer disclosures) in the introductory paragraph of Rule 5740.
• The SEC waived the usual 30-day operative delay under Rule 19b-4(f)(6)(iii), making the change effective upon filing on September 28, 2026.
• Comments on file number SR-NasdaqTX-2026-049 are due on or before November 3, 2026.

Executive summary

The SEC published notice of a proposed rule change filed by Nasdaq Texas, LLC on September 28, 2026 (Release No. 34-106629; File No. SR-NasdaqTX-2026-049). The filing amends Rule 5740, which governs trading of UTP Derivative Securities, securities listed on another…

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