U.S. Options

The MIAX Options Exchange has recently amended MIAX Rules 515 and 529 to provide market participants additional flexibility in designating the level of price protections for their orders and to expand the circumstances under which immediate routing will occur. (See SR-MIAX-2014-08 and SR-MIAX-2014-17).
 
The MIAX price protection mechanism creates a pricing collar which prevents an order from being executed beyond the price designated in the order’s price protection instructions (the “price protection limit”).  The price protection instructions will be expressed in units of Minimum Price Variation (“MPV”) away from the NBBO at the time of the order’s receipt, or the MBBO if the ABBO is crossing the MBBO.  Pursuant to Rule 515(c)(1), market participants may choose to designate or disable price protection instructions on an order by order basis.  The default price protection will be one MPV away from the NBBO at the time of receipt, or the MBBO if the ABBO is crossing the MBBO.  When triggered, price protection will cancel an order or the remaining contracts of an order.

The Exchange will make these enhancements operative per the following rollout schedule:

• Day 1:  Wednesday, May 28th - Symbols beginning with Z
• Day 2: Thursday, May 29th - Symbols U  through Y
• Day 3: Friday, May 30th - Symbols  A through H (excluding AAPL)
• Day 4: Monday, June 2nd -  Remaining symbols

No action will be required for Member Firms desiring to maintain the current default one-tick price collar protection for all non-Market Maker orders.

For detailed examples of how price protection works in various scenarios, please see Appendix A. 

MIAX Options Trading Interface Specifications are located at interface-specifications.  

The MIAX Rulebook is located at regulatory

Please contact MIAX Trading Operations at TradingOperations@miaxglobal.com or (609) 897-7302 to discuss any specific issues and to arrange interface testing.