Miami International Holdings, Inc.

From MarketsWiki
Jump to: navigation, search

Miami International Holdings, Inc.
MIHI Logo.jpg
Headquarters Princeton, New Jersey
Key People Thomas P. Gallagher, Executive Chairman
Employees 51-200
Products Holding Company
Website www.miaxoptions.com
Releases Company News

Miami International Holdings, Inc. is an exchange holding company for three US equity options exchanges: MIAX Options, launched on December 7, 2012,[1] MIAX Pearl, launched on February 6, 2017 and MIAX Emerald, launched on March 1, 2019. With the launch of MIAX Emerald, the MIAX Exchange Group now has access to approximately 80% of the overall U.S. options market volume.

MIAX Options and MIAX Pearl each list about 2,800 multi-listed classes and run on MIAX's in-house developed trading platforms. It also owns a controlling stake in the Bermuda Stock Exchange, has invested in nascent bitcoin derivatives exchange LedgerX and partnered with the Minneapolis Grain Exchange (MGEX) on a volatility futures product.

float

The MIAX Exchange Group’s executive offices and National Operations Center are located in Princeton, NJ, with a Miami Operations Center, Annual Meeting and Conference Center, and offices for MIAX Technologies and MIAX Global, two other MIH subsidiaries, located in Miami, FL.

Miami International Holdings was ranked 15th in exchanges by volume in the FIA's 2018 Annual Volume Survey, with 421 million contracts traded, split roughly evenly between MIAX Options and MIAX Pearl, up 81% from the previous year.[2]

History

In 2008, Miami International Holdings, Inc. formed a foreign limited liability company called Miami Board of Trade, LLC.[3]

The company had planned to launch a U.S. options exchange as early as July 2009 but did not launch the Miami International Securities Exchange until December 7, 2012, after receiving SEC approval on December 3, 2012. [4]

The initial focus for the company was to establish its options exchange and then add the MIAX Equities Exchange, with plans to pursue Latin American companies as well as the MIAX Futures Exchange, both pending regulatory approval.[5] [6][7] [8][9]

In May 2017, LedgerX announced that its parent, Ledger Holdings, had raised an additional $11.4 in a Series B round led by Miami International Holdings and Huiyin Blockchain Venture Investments.[10][11] In an earlier announcement on December 16, 2016, Miami International Holdings and LedgerX had said they had agreed that Miami International Holdings received exclusive worldwide rights for ten years to license equity or fixed income products related to LedgerX products for listing on MIAX and MIAX PEARL, the two Miami International Holdings existing at the time. The parties also agreed to pursue technology opportunities at that time.[12]

Miami International Holdings announced in May 2019 that it will launch the equity market in Q2 2020. It partnered with Hudson River Trading and CTC Holdings on the exchange and also received backing from exchange member firms such as: IMC, Simplex Trading, Susquehanna International Group's Susquehanna Trading, and Two Sigma Investments, LP. The concept for an equities exchange, which was first floated years earlier, is subject to regulatory approval.[13][14][15]

In September 2019 the company partnered with the Minneapolis Grain Exchange (MGEX) to list and clear futures on the SPIKES Volatility Index. SPIKES, designed by the financial indexing firm, T3 Index, is a measure of the expected 30-day volatility in the SPDR® S&P 500® ETF (SPY), the most actively-traded exchange traded fund in the world.[16] Futures trading started on November 18, 2019,[17] but it was abruptly halted on November 29 in light of otherwise undisclosed discussions between MGEX and the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC).[18]

In November 2019, the company acquired a majority stake in the Bermuda Stock Exchange. MIH cited the digital asset legislation called the Digital Asset Business Act 2018, or Daba as one of the drivers of the deal. Bermuda Stock Exchange offers capital market instruments such as equities, debt issues, funds, hedge funds, derivative warrants and insurance-linked securities.[19]

In January 2020, Miami International Holdings announced that Mark Wetjen would join its management as Executive Vice President for Futures and Innovative Products as well as Executive Regulatory Liaison Officer. Wetjen had most recently served as a managing director of Depository Trust & Clearing Corporation (DTCC) and earlier was a Commissioner at the CFTC. [20] While at DTCC, Wetjen became an advisor to LedgerX.

Products and Services

On its website, Miami International Holdings states that its mission is to provide:

  • A marketplace that caters to the needs of the customer and trading community
  • Competitive pricing based on a low cost operating structure
  • Superior customer service
  • Outstanding technology

The company has an in-house trading platform. The MIAX platform offers:

  • MIAX FIX gateway for orders
  • MIAX Express Interface (MEI) offers direct connections to the match engine for high-speed mass quoting
  • MIAX Top of Market (ToM) provides low latency access to MIAX market data
  • MIAX Clearing Trade Drop (CTD) provides real-time clearing trade content to firms with the same low latency technology.[21]

Contract Volume

Year Total Annual Volume* Percent Change
2019 411,315,033 (-)2.3%
2018 421,320,501 81.4%
2017 232,223,967 (-)6.0%
2016 247,112,479 (-)2.2%
2015 252,605,427 87.8%
2014 134,535,972 241.2%
2013 39,430,903 --

Key People

  • Thomas P. Gallagher, Chairman and Chief Executive Officer
  • Douglas M. Schafer, Executive Vice President, Chief Information Officer and Director
  • Barbara Comly, Executive Vice President, General Counsel and Corporate Secretary
  • Lance Emmons, Executive Vice President, Chief Financial Officer
  • Shelly Brown, Senior Vice President, Strategic Planning and Operations
  • Edward Deitzel, Executive Vice President, Chief Regulatory Officer
  • Mark Wetjen, Executive Vice President, Futures and Innovative Products; Executive Regulatory Officer, CEO MIAX Futures[22]

References

  1. MIAX OPTIONS EXCHANGE SUCCESSFULLY LAUNCHES. MIAX.
  2. 2018 Annual Volume Survey. Futures Industry.org.
  3. Foreign Limited Liability Company. Florida Department Of State Division Of Corporations.
  4. (Press Release) US Options Exchanges Battle for Liquidity as Pennies, Internalization and Regulatory Environment Shift Landscape. TABB Group.
  5. About MIAX. MIAX Options.
  6. Miami International to Introduce 10th U.S. Options Exchange. Bloomberg.
  7. Miami International Sees September Launch For Stock-Options Exchange. WSJ.
  8. Debut of new exchanges could hurt options industry. Chicago Tribune.
  9. Miami International Planning U.S. Stock Exchange After Options Launch. Bloomberg.
  10. Secretary of State. State of Delaware.
  11. LedgerX Raises $11.4 Million to Establish a Regulated Bitcoin Options Clearing House and Exchange. LedgerX, LLC.
  12. Miami International Holdings and Ledger Holdings Investment in LedgerX Holding CompanyAnnounce; MIH Secures Exclusive Worldwide Product Licensing Rights for Digital Currency Derivatives and Signs Technology Agreement for MIAX Technologies. PR Newswire.
  13. As Stock Exchanges Multiply, Miami Wants In on the Game. The Wall Street Journal.
  14. Miami International to launch cash equities exchange. The Trade.
  15. Miami International Holdings Partners with Leading Equities Firms to Launch Cash Equities Exchange. Press Release.
  16. MIAX and MGEX Announce SPIKES® Futures Launch Date. Press Release.
  17. MGEX Launches SPIKES Futures in Collaboration with MIAX and T3 Index. Minneapolis Grain Exchange.
  18. MEMO, Subject: Suspension of SPIKES Futures Trading. Minneapolis Grain Exchange.
  19. US firm acquires controlling interest in BSX. Press Release.
  20. MIAX Welcomes Industry Veteran Mark Wetjen to Lead Expansion of Futures and Digital Securities Products. Miami International Holdings.
  21. About MIAX. MIAX Options.
  22. Management Team. MIAX Options.