U.S. Options

In addition to the system enhancements announced in the September 22nd and October 19th Alerts, MIAX Emerald Options Exchange is also planning to introduce the following enhancements:

• MIAX Emerald Order Monitor: 
  • Beginning Oct 25, 2022, MIAX Emerald will allow Members to define a pre-set value to be used as the threshold setting that the Exchange will use when evaluating market orders to sell when the national best bid is zero and the national best offer is less than, equal to, or greater than the threshold setting.
  • Please refer to MIAX_Emerald_Options_RC_2022_57 for more information
• Complex Auction Enhancement, pending SEC Approval, will be activated at a future date:
  • Initial (IIP), Upon Receipt (URIP) and Reevaluation (RIP) Improvement Percentages to use the cNBBO:
    • The bid ask differential used to determine whether a complex order is qualified to initiate a Complex Auction has been updated to be based on the cNBBO
• New Protections for Complex Orders and Simple Orders, pending SEC Approval, will be activated at a future date:
  • Max Put Price Protection (applies to simple and complex orders)
    • MIAX Emerald will determine a maximum trading price limit for a Put option as the strike price plus a pre-set value.
  • MIAX Strategy Price Protection (MSPP)
    • MIAX Emerald is adopting a new MSPP for complex orders. The MSPP establishes a maximum protected price for buy orders and a minimum protected price for sell orders.
  • Butterfly Spread Variance (BSV) Price Protection
    • MIAX Emerald will determine a BSV which establishes minimum and maximum trading price limits for Butterfly Spreads. 
  • Managed Protection Override Setting
    • The Managed Protection Override setting will allow Members to have their orders cancelled after a risk protection event is triggered. The Managed Protection Override will apply to all of the following risk protections:
    • 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
  • Additional Price Protection for Vertical Spread and Calendar Spread Strategies:
    • Buy orders with a limit price less than the minimum trading price limit are currently rejected. MIAX Emerald Options is extending this protection to now include limit orders to sell and Offer eQuotes.

All features listed above are available in the MIAX Emerald Options Firm Test Bed (FTB2) environment.

Please review the updated interface specifications for further details on the MIAX website at MIAX Emerald Options Exchange Specifications

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