(Bloomberg) -- Miami International Holdings Inc.’s new options exchange is up and running with its first ticker symbol and options on additional securities to be added in coming weeks.
The exchange operator, also known as MIAX, started trading on the electronic version of its new venue with options on International Business Machines Corp., according to a statement Tuesday. MIAX plans to offer additional listings rolled out in phases on a weekly basis through Oct. 21. This marks the fourth national securities exchange for US multi-listed options that MIAX operates.
The exchange expects to open a physical options trading floor in the second quarter of next year, according to a spokesperson. That floor will be based in Miami, where MIAX has been constructing a new office since late last year, Bloomberg News has reported.
The company also operates an equity exchange, two futures exchanges, one international exchange, a clearinghouse and a futures-commission merchant. The new MIAX Sapphire electronic exchange, with a data center based in Secaucus, New Jersey, operates under a so-called taker-maker model, where users who take liquidity in the options market receive a rebate, and those who make liquidity pay a fee, according to the statement.
Few exchanges still have pit trading, where hand signals and verbal communication are used alongside electronic systems. But a physical trading floor creates an iconic image that harkens back to before speedier electronic market-making took over. MIAX says it will have a media space for broadcasts in the new space.
Trading volume in the US options market has been smashing records, thanks in part to a boom in contracts tied to the S&P 500 Index that expire within 24 hours. Combined volume of calls and puts traded on US exchanges reached a record 73 million contracts on Aug. 2, data compiled by Bloomberg show. That’s up more than 300% from a five-year daily average of 17.6 million prior to the pandemic.
New venues are popping up amid the surge in volume. The Members Exchange, or MEMX, started offering options trading on its new venue starting in September of 2023.
--With assistance from Elena Popina.
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