The Securities and Exchange Commission has approved the launch of the Miami Options Exchange (MIAX), which from tomorrow will offer the electronic trading of US options.
Technology for the new market was developed in-house, which the firm says will help meet the functional and performance demands of derivatives trading.
“After extensive mock trading sessions, we are very pleased with the features and performance capabilities of our new platform, as are our prospective exchange members,” said Doug Schafer, executive vice president and chief information officer at MIAX. “In order to be successful, the trading community needs a trading platform with ultra-low latency, proper protections and exceptional throughput, which we are confident the MIAX Options Exchange trading platform will be able to provide to our users.”
MIAX offices, operations and technology development center are located in Princeton, New Jersey, with additional executive offices located in Miami.
Once MIAX is up and running, the firm plans to launch an equities market with a focus on Latin American listings. According to the firm, its Miami base is an ideal location for taking advantage of business opportunities emanating from the region. It is also planning the launch of the MIAX Futures Exchange, subject to approval from the Commodity Trading and Futures Commission.
Direct Edge prepares new retail framework
Meanwhile, Direct Edge is gearing up for the 17 December launch of a initiative it claims will offer price improvement on retail orders.
The scheme follows recently-launched retail trading offerings from NYSE Euronext and BATS Exchange, but takes a different approach to servicing retail flow.
The scheme will create a new designation for brokers that send retail limit order flow to Direct Edge’s EDGX exchange platform.
To qualify as a retail orders, trades must originate from a natural person rather than an algorithm. Members registered with Direct Edge to submit retail orders will be charged US$0.003 for removing liquidity and receive a rebate of US$0.0032 for adding liquidity.
“We are taking a different approach to NYSE and BATS by using limit, rather than market, orders submitted by retail brokers that offer the benefits of all flow that is traded on Direct Edge,” Direct Edge COO Bryan Harkins told theTRADEnews.com.