MIAX will retain a 10% equity stake as part of the transaction, which is expected to facilitate the firm’s entry into prediction markets for both its institutional and retail clients.
The move comes as MIAX “continues to focus on strategic growth opportunities within its core exchanges,” and looks to facilitate its entry to the prediction markets to benefit both institutional and retail futures traders.
Bloomberg 500 Index futures and options will be listed with the aim of providing competitive fees, increased product choice and more granular contract sizes.
One of the key initiatives the capital injection is set to contribute to is the construction and fit-out of MIAX’s new physical trading floor in Miami, Florida for MIAX Sapphire.
The move follows the official launch of the MIAX Sapphire electronic exchange on 12 August 2024; Sapphire is MIAX’s fourth US listed options exchange.
Sapphire will be MIAX’s fourth national securities exchange for US options and will eventually operate both an electronic exchange and a physical trading floor.
“Trading floors represent a different way of doing things, not a worse way, not an inferior way. A different way of doing it - there’s value in that,” says one market expert.
New exchange will utilise taker-maker pricing and a price-time allocation model; will commence electronic trading in Q2 next year, following regulatory approval.
Almost a half of futures commission merchants (FCM) surveyed in a new Acuiti report said they had seen an increase in interest from clients for trading volatility since 2020.
Learn more about the five firms shortlisted for our Editors’ Choice Award for Best Challenger Exchange, a new category for this year: including Archax, FTX, IEX, MEMX and MIAX.