U.S. Options

Please be advised that MIAX has identified a technical issue related to behavior at the conclusion of the Price Improvement Mechanism (“PRIME™”) auction that has the potential to cause an improper execution following a PRIME™ auction.  The PRIME™ Agency Order will trade properly with the PRIME Contra Order and PRIME responses.

MIAX Trading Operations will proactively monitor the system and inform affected participants in the event of a future occurrence.  This issue will be addressed in an upcoming release and announced in a Technical Alert upon completion of the rollout.

The issue only occurs during the following circumstances where a PRIME™ auction terminates early due to unrelated incoming interest (and following the PRIME™ execution itself), the MIAX system may trade at an improper price with certain remaining resting interest (orders and/or quotes).

The pre-condition for the specific problem scenario must meet ALL of the following criteria in order to occur:

• A PRIME Auction must terminate early when un-related liquidity locks or crosses the Best Auction Response; and
• The Best Priced Auction Response is outside the published ABBO.  (response offered lower than the ABBO bid or bid higher than the ABBO offer)
• At the conclusion of the Auction, the PRIME Agency Order will trade properly with the PRIME Contra Order and PRIME responses
• Remaining Auction Responses may trade with un-related liquidity
  • If the ABBO has changed during the Auction, this price may be outside the prevailing NBBO

If the above preconditions exist, the MIAX system will trade outside the posted ABBO.

If you have any questions please contact Trading Operations at (609) 897-7302 or TradingOperations@miaxglobal.com.

Please direct any regulatory questions to the Regulatory Department at (609) 897-7309 or Regulatory@miaxglobal.com.