MIAX Pearl Equities

Last updated
MIAX Pearl Equities
Type Stock exchange
LocationPrinceton, New Jersey, United States
FoundedSeptember 2020;4 years ago (September 2020)
Owner Miami International Holdings
Currency United States dollar
Website MIAX Pearl Equities

MIAX Pearl Equities (MIAX), is an American stock exchange headquartered in Princeton, New Jersey. The exchange also has offices in Miami, Florida, where its parent company Miami International Holdings is based.

Contents

History

In March 2019, financial conglomerate and exchange operator Miami International Holdings (MIH), announced plans to launch a new US stock exchange, which would later become MIAX Pearl Equities. [1] Prior to this, MIH had already set up three equity options exchanges in the US. [2] [3] According to then-Chairman and CEO Tom Gallagher, MIH hoped to complement its options offerings and later break into the listings business. [4]

On August 18, 2020, the Securities Exchange Commission approved MIH's filing to register the stock exchange, paving the way for its launch. [5]

MIAX Pearl Equities was launched in September 2020, in the same month as the Long-Term Stock Exchange and Members Exchange. This brought the total number of US stock exchanges at the time to 16, with MIAX Pearl Equities being the latest entrant. [6] [7]

Initially, the exchange raised $22 million by selling prepaid blocks of fees to a group of market makers that included Citadel Securities and UBS. The exchange also waived fees for market data and offered a rebate of 32 cents per 100 shares for market makers to display orders on the platform, a level which sits toward the higher end of what incumbent exchanges such as the New York Stock Exchange and Nasdaq offered, [8] in hopes of gaining market share and trading volume. [9]

The exchange began trading on September 29, 2020, initially offering only a single low-volume symbol, Netgear (NTGR), [10] before gradually expanding to all US listed stocks.

In May 2022, MIAX's parent company Miami International Holdings announced that it had confidentially submitted paperwork with the regulators for a U.S. IPO. [11]

Operations

Fees

MIAX Pearl Equities is positioned as a lower cost alternative to its larger rivals such as NYSE and Nasdaq. [12]

The exchange also incentivizes a group of nine high-speed market makers, using a system of rebates or special fees, to provide liquidity on its platform. [13]

Clearing

As of April 2024, clearing members of the exchange include major banks such as Goldman Sachs and JP Morgan, and also equity market makers such as Jane Street Capital and Hudson River Trading. [14]

National Market System

The exchange is a participant of several National Market System plans, including the Consolidated Tape Association, Unlisted Trading Privileges, Consolidated Audit Trail (CTA), and Limit Up-Limit Down (LULD). [15]

Market data

Through its affiliate Bermuda Stock Exchange, MIAX Pearl Equities publishes its market data to the Pyth Network, a decentralized service that provides real-time market data on the Solana blockchain. [16] [17] [18]

Matching engine

The exchange's trading system is situated in the Equinix NY4 data center in Secaucus, New Jersey. [19]

Products

See also

Related Research Articles

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References

  1. ↑ "As Stock Exchanges Multiply, Miami Wants In on the Game". WSJ. Wall Street Journal.
  2. ↑ "MIAX plans September launch of stock trading on Pearl Equities". Nasdaq.
  3. ↑ "MIAX plans September launch of stock trading on Pearl Equities". Reuters.
  4. ↑ "New stock exchange ventures say US market is ripe for disruption". S&P Global.
  5. ↑ "MIAX to launch 16th US stock exchange following SEC approval". S&P Global.
  6. ↑ "Miax joins challengers to dominant US exchange operators". Financial Times. 14 September 2020.
  7. ↑ "Trading exchange execs ask if tough times are ahead as market-altering rules loom". CNBC. 8 June 2022.
  8. ↑ Henderson, Richard (December 2020). "New exchanges bring ambition to reshape US equity market". Financial Times.
  9. ↑ "New stock exchanges are ready to launch to compete for your trading dollar". CNBC. 9 September 2020.
  10. ↑ "MIAX PEARL Equities Expands Traded Symbols". Traders Magazine. 6 October 2020.
  11. ↑ "MIAX-parent Miami International Holdings confidentially files for U.S. IPO". Reuters.
  12. ↑ Osipovich, Alexander. "Wall Street-Backed Exchange Launches as Rival to NYSE, Nasdaq". WSJ. Wall Street Journal.
  13. ↑ Watson, Ethan; Woods, Donovan (November 2022). "Exchange introduction and market competition: The entrance of MEMX and MIAX". Global Finance Journal. 54. doi:10.1016/j.gfj.2022.100756.
  14. ↑ "MIAX Pearl Equities Member Directory" (PDF).
  15. ↑ "MIAX Pearl Equities National Market System Plans".
  16. ↑ "Crypto Market-Data Network Pyth Going Live on Solana Blockchain". Bloomberg. 25 August 2021.
  17. ↑ "BSX publishes market data to Pyth Network". The Royal Gazette. 22 September 2021.
  18. ↑ "BSX Begins Publishing MIAX Pearl Equities". 21 September 2021.
  19. ↑ "U.S. Equities Connectivity".
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