U.S. Options

MIAX Emerald Options Exchange will be activating the following system enhancements previously announced in the October 20th Alert:

• Complex Auction Enhancement will be activated on 12/12/2022:
  • 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 qualifies to initiate a Complex Auction has been updated to be based on the cNBBO
• Introducing New Protections for Complex Orders and Simple Orders will be activated on 12/12/2022:
  • 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) 
    • MIAX Emerald will determine a BSV which establishes minimum and maximum trading price limits for Butterfly Spreads. 
  • 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 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:
    • The Exchange is extending existing price protection that rejects buy orders with a limit price less than the minimum trading price limit to now include both limit orders to sell and offer side 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.