Fair and efficient markets.
Everybody wants them. Few are willing to combine the capital and know-how to make it happen.
That’s the key takeaway from a conversation with MIAX’s chief communications officer Andy Nybo. Read below to find out more on how MIAX is disrupting markets with a data, technology and customer service focus.
Background: Miami International Holdings, MIAX’s parent holding company, is comprised of the Miami International Securities Exchange, MIAX Pearl, MIAX Emerald, the Minneapolis Grain Exchange (MGEX) and the Bermuda Stock Exchange (BSX).
Taken together, MIAX, which was founded by CEO and president Tom Gallagher, is a holistic gateway to equity, options and futures markets.
“Our technology is second to none,” Nybo, who is also a market structure expert, said.
For instance, the core functionalities MIAX brings to the table include intelligent risk controls key in allowing liquidity providers the ability to maintain efficient markets during volatility.
“We spend a lot of time and effort on making sure our technology is fast, tested, and bulletproof, [and] we have a help desk that constantly monitors our network and client connectivity. If we get a phone call or email, our trading operations desk responds immediately to the issue.”
Since its inception, the MIAX Group of Exchanges boasts a 99.99% uptime. “We’ve had very few outages in our operational history, a testament to how seriously we take in building our technology.”
The firm has a market share of just under 15% in U.S. equity options and maintains just under 1% in the market share of U.S.-listed equities.
Evolution: “We’re constantly adding new members to participate on our platform.”
Over the years, and more so recently, MIAX expanded its footprint with the acquisition of BSX and MGEX, among others.
The focus on the BSX front is around digital assets — via crypto ETFs, for example — as well as the insurance-linked securities market.
The MGEX front is a work in progress, also.
“We’re currently in the process of investing substantially in the business, including enhanced technology and new product types,” Benzinga was told as to the reasoning of why MGEX was a good fit for MIAX. “They have a Designated Contract Market (DCM) or the ability to trade under a license from the CFTC and we also have a Designated Clearing Organization (DCO) license allowing us to launch, trade, and clear proprietary products under the MGEX umbrella.”
An example product is SPIKES, a future on an index that measures the expected 30-day volatility in the SPDR S&P 500 ETF (NYSE:SPY), one of the largest ETFs that track the S&P 500. Just this week, the news was out that the product traded 14,890 contracts, a daily record.
The cash-settled BRIXX Commercial Real Estate futures contract trading on MGEX is another key product offering market participants low-cost exposure to the $16-trillion commercial real estate market.
“Up until now, there has not been a successful real estate future targeted at the institutional real estate community, launched in the U.S.,” Nybo said.
“We also have a suite of four different commercial real estate futures we’re launching in the fourth quarter, including contracts on retail and hospitality sectors, as well as the residential and office sectors.”
MIAX also plans to launch options on these new products on its MIAX Options Exchange in the future.
Outlook: MIAX is in the early stages of disrupting markets.
“We’re going to continue to develop new products and expand our focus both on domestic, as well as international markets,” Nybo ended. “It’s about providing best-in-class technology, as well as innovative products that are needed from both our partners, including market makers and liquidity providers, as well as investment professionals and trading firms.”