U.S. Equities

As previously announced in the March 5, 2024 and the April 22, 2024 Alerts, the MIAX Pearl Equities (EPRL) Exchange has published updated Interface Specifications and User Guides to support the following system enhancements, targeted to be available in production in July 2024. The below enhancements are currently available for testing in the EPRL Firm Test Bed 2 (FTB2) environment.

1. Enhancement Details:
   1. Trading Collar “Custom Dollar Value” functionality will expand to all Order Types – Available Tuesday, July 9, 2024
      1. The MIAX Pearl Equities default behavior is to calculate the Trading Collar price range for a security by applying the numerical guidelines for Clearly Erroneous Executions or a specified dollar value established by the Exchange.  Members may currently override the Exchange’s default behavior for Market Orders only, on an order-by-order basis, by selecting a custom dollar value lower than the Exchange specified percentages and dollar value.
      2. The “Custom Dollar Value” functionality will be expanded to include Limit Orders and Pegged Orders, in addition to Market Orders (current behavior), pending filing with the SEC. Members will be able to select a custom dollar value lower (current behavior), higher, or equal to the Exchange-specified percentages and dollar value on an order-by-order basis. 
   2. Cumulative Risk Metrics (“CRM”) Protections – Ability to set up Customized Warning Levels – Available Tuesday, July 9, 2024
      1. MIAX Pearl Equities currently provides members with the ability to limit their notional exposure aggregated across open orders, trades, or both for a Risk Protection Group, for a day, to a specified maximum value.  Warnings are currently only generated if the member’s activity is greater than or equal to 75% or 90% of the threshold.
      2. Members will now have the ability to configure up to 3 customized warning levels for a given Risk Protection Group in addition to the warnings above.
   3. Enhancements to the Member Firm Portal (MFP) API – Available Monday, July 29, 2024
      1. The MFP API will be expanded to allow member firms to automate actions for the following risk controls:
         1. Per-Order Risk Metrics (PERM)
            1. Maximum Order Size
            2. Market Order Price Protection
            3. Limit Order Price Protection
            4. Average Daily Volume (ADV) Check
            5. Average Daily Volume (ADV) Check – Symbol Override
            6. Maximum Order Notional Value for Limit Orders
            7. Maximum Order Notional Value for Market Orders
            8. Market Order Reject
            9. ISO Reject
            10. Short Sale Reject
            11. Short Sale Exempt Reject
            12. Locate Account Validation List
            13. Allow Test Securities
            14. Non Agency Reject
            15. Override Capacity to Agency
      2. Trading Risk Metrics (TRIM)
         1. Market Impact Collar
         2. Self-Trade Protection
      3. Mass Cancel Capabilities
         1. Mass Cancel Capability will be supported at the following scopes:
            1. Firm
            2. Session
            3. MPID
            4. MPID + Group
2. Interface Specifications updated to reflect the new functionality:
   1. FIX Interface Specification (FOI) – Version 2.5b
      1. Updated the description for the New Order – Single Message field TradingCollarDollarValue (tag# 9478) to incorporate expanding availability of the Trading Collar Custom Dollar Value to all Order Types
   2. MEO Interface Specification (MEO) – Version 2.6a
      1. Updated the description for the New Order Request message field Trading Collar Dollar Value to incorporate expanding availability of the Trading Collar Custom Dollar Value to all Order Types
      2. Updated the New Order Response description for error code “o”
3. User Guides updated to reflect the new functionality:
   1. MIAX Pearl Equities User Manual and Risk Protections Guide
      1. Updated the Trading Collar description to reflect the new Custom Dollar Value functionality.
      2. Updated the Cumulative Risk Metrics (“CRM”) section with description of custom and mandatory warning level configuration.

For further information, please contact MIAX Trading Operations at TradingOperations@miaxglobal.com or (609) 897-7302.

Regulatory inquiries should be directed to Regulatory@miaxglobal.com or (609) 897-7309.

To learn more about MIAX Pearl Equities please contact Sales@miaxglobal.com, (609) 897-8177 or visit miaxglobal.com.