Trading Alert
MIAX Options
March 04, 2022 | 02:57 PM
MIAX Options Exchange - Introducing New Protections for Complex Orders and Simple Orders on March 9, 2022
As previously announced in the November 2, 2021 Alert, the MIAX Options Exchange will introduce new protections for Complex Orders and Simple Orders, beginning March 9, 2022.
Butterfly Spread Variance (“BSV”) Price Protection
The Exchange will determine a Butterfly Spread Variance (“BSV”) which establishes minimum and maximum trading price limits for Butterfly Spreads.
Max Put Price Protection
The Exchange will determine a maximum trading price limit for a Put option as the strike price plus a pre-set value.
Managed Protection Override
The Managed Protection Override is a setting which, when enabled, allows Members to have their orders cancelled after a risk protection is triggered. If enabled the Managed Protection Override will apply to all of the risk protections listed below.
- Vertical Spread Variance (“VSV”) Price Protection
- Calendar Spread Variance (“CSV”) Price Protection
- Butterfly Spread Variance (“BSV”) Price Protection
- Parity Price Protection
- Max Put Price Protection
The Exchange is also adopting a new MIAX Strategy Price Protection (“MSPP”) for complex orders. The MSPP establishes a maximum protected price for buy orders and a minimum protected price for sell orders.
For additional details reference MIAX Options Regulatory Circular 2022-15 and MIAX Options Regulatory Circular 2022-16.
Important Dates:
- These features are currently available in Firm Test Bed (FTB2)
- The rollout will be available in production beginning March 9, 2022
Please contact MIAX Trading Operations at TradingOperations@miaxglobal.com or (609) 897-7302 to discuss any specific issues, update configurations and to arrange interface testing.