MIAX Pearl Equities

Last updated
MIAX Pearl Equities
Type Stock exchange
LocationPrinceton, New Jersey, United States
FoundedSeptember 2020;3 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

<span class="mw-page-title-main">Nasdaq</span> American stock exchange

The Nasdaq Stock Market is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange. The exchange platform is owned by Nasdaq, Inc., which also owns the Nasdaq Nordic stock market network and several U.S.-based stock and options exchanges. Although it trades stock of healthcare, financial, entertainment, retail, and food businesses, it focuses more on technology stocks.

<span class="mw-page-title-main">Day trading</span> Buying and selling financial instruments within the same trading day

Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open. Traders who trade in this capacity are generally classified as speculators. Day trading contrasts with the long-term trades underlying buy-and-hold and value investing strategies. Day trading may require fast trade execution, sometimes as fast as milli-seconds in scalping, therefore direct-access day trading software is often needed.

The National Stock Exchange (NSX) is an electronic stock exchange based in Jersey City, New Jersey. It was founded March 1885 in Cincinnati, Ohio, as the Cincinnati Stock Exchange.

An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities such as gold bars. Many ETFs provide some level of diversification compared to owning an individual stock.

An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges. An ECN is generally an electronic system that widely disseminates orders entered by market makers to third parties and permits the orders to be executed against in whole or in part. The primary products that are traded on ECNs are stocks and currencies. ECNs are generally passive computer-driven networks that internally match limit orders and charge a very small per share transaction fee.

Nasdaq Dubai is a Dubai-based stock exchange that lists regional and international shares in the Middle East. Through the exchange, regional issuers can access regional and international investment. International issuers can access investment from the region, through a primary or dual listing.

NYSE Euronext, Inc. was a transatlantic multinational financial services corporation that operated multiple securities exchanges, including the New York Stock Exchange, Euronext and NYSE Arca. NYSE merged with Archipelago Holdings on March 7, 2006, forming NYSE Group, Inc. On April 4, 2007, NYSE Group, Inc. merged with Euronext N.V. to form the first global equities exchange, with its headquarters in Lower Manhattan. The corporation was then acquired by Intercontinental Exchange, which subsequently spun off Euronext.

<span class="mw-page-title-main">Options Clearing Corporation</span> Financial services business

Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 16 exchanges. It was started by Wayne Luthringshausen and carried on by Michael Cahill. Its instruments include options, financial and commodity futures, security futures, and securities lending transactions.

<span class="mw-page-title-main">Intercontinental Exchange</span> American exchange and clearing house company

Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe; the Liffe futures exchanges in Europe; the New York Stock Exchange; equity options exchanges; and OTC energy, credit, and equity markets.

<span class="mw-page-title-main">Jamaica Stock Exchange</span> Jamaican stock market index

The Jamaica Stock Exchange is the principal stock exchange of Jamaica, also known as JSE. Incorporated in 1968, JSE opened in 1969 in Kingston, Jamaica. Today, the JSE is one of the largest stock exchanges in the Caribbean by size and market capitalization. As of 30 September 2019, there is a total number of 85 companies and 120 securities listed to the JSE, and a market capitalization of just over JM$2 trillion. The Jamaica Stock Exchange is composed of multiple markets: Main Market, Junior Market, USD Market, and Bond Market. The JSE is also recognized as one of the most sector-diverse exchanges in the Caribbean. The key sectors include banking and finance, retail, manufacturing, insurance, leisure, communications, conglomerate, and services and real estate. The current chairman is Ian McNaughton and the deputy chairman is Gary Peart. The managing director is Marlene Street Forrest.

The Consolidated Tape Association (CTA) oversees the Securities Information Processor that disseminates real-time trade and quote information in New York Stock Exchange (NYSE) and American Stock Exchange (AMEX) listed securities. It is currently chaired by Emily Kasparov of the Chicago Stock Exchange, the first woman and the youngest chair elected to the position.

The Options Price Reporting Authority (OPRA) oversees the Securities Information Processor (SIP) that provides last sale information and current options quotations from a committee of participant exchanges. In turn, this committee is designated as the Options Price Reporting Authority.

<span class="mw-page-title-main">BATS Global Markets</span> Global stock exchange

BATS Global Markets is a global stock exchange operator founded in Lenexa, Kansas, with additional offices in London, New York, Chicago, and Singapore. BATS was founded in June 2005, became an operator of a licensed U.S. stock exchange in 2008 and opened its pan-European stock market in October 2008. As of February 2016, it operated four U.S. stock exchanges, two U.S. equity options exchanges, the pan-European stock market, and a global market for the trading of foreign exchange products. BATS was acquired by Cboe Global Markets in 2017.

High-frequency trading (HFT) is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons in trading securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second.

Direct Edge was a stock exchange operating two separate platforms, EDGA Exchange and EDGX Exchange. It was based in Jersey City, New Jersey.

<span class="mw-page-title-main">Virtu Financial</span> Financial services company

Virtu Financial is an American company that provides financial services, trading products and market making services. Virtu provides product suite including offerings in execution, liquidity sourcing, analytics, broker-neutral, multi-dealer platforms in workflow technology and two-sided quotations and trades in equities, commodities, currencies, options, fixed income, and other securities on over 230 exchanges, markets, and dark pools. Virtu uses proprietary technology to trade large volumes of securities. The company went public on the Nasdaq in 2015.

<span class="mw-page-title-main">Securities market participants (United States)</span>

Securities market participants in the United States include corporations and governments issuing securities, persons and corporations buying and selling a security, the broker-dealers and exchanges which facilitate such trading, banks which safe keep assets, and regulators who monitor the markets' activities. Investors buy and sell through broker-dealers and have their assets retained by either their executing broker-dealer, a custodian bank or a prime broker. These transactions take place in the environment of equity and equity options exchanges, regulated by the U.S. Securities and Exchange Commission (SEC), or derivative exchanges, regulated by the Commodity Futures Trading Commission (CFTC). For transactions involving stocks and bonds, transfer agents assure that the ownership in each transaction is properly assigned to and held on behalf of each investor.

The Members Exchange (MEMX) is an American technology-driven stock exchange founded by its members to serve the interest of its founders and their collective client base. The founding members, which include nine major financial organizations, claim they seek to transform markets around the goals of transparency, innovation, and competition in order to align exchange services with the interests of market participants. It is a member-formed equities trading platform, and competes with the major equity exchanges: NYSE, Nasdaq, and CBOE.

Unlisted Trading Privileges (UTP) oversees the Securities Information Processor for securities listed on Nasdaq and other securities that do not meet the requirements for listing on an exchange.

<span class="mw-page-title-main">Miami International Holdings</span> American exchange and clearing house company

Miami International Holdings, Inc. (MIH) is an American company formed in 2007 that operates global financial exchanges and execution services.

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.
  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.
  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".
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.