Miami International Holdings

Last updated
Miami International Holdings, Inc.
Industry Business services
Financial services
Financial markets
Technology
Founded2007;17 years ago (2007)
FounderThomas P. Gallagher
Headquarters
Princeton, New Jersey
,
U.S.
Key people
Thomas P Gallagher
(Chairman and CEO)
Products Clearing
Exchange Listing
Financial Data
Subsidiaries MIAX
MIAX Pearl
MIAX Pearl Equities
MIAX Emerald
Bermuda Stock Exchange
Minneapolis Grain Exchange
Dorman Trading
Website www.miaxglobal.com

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

Contents

The company owns several U.S. exchanges for equities, equity options, and commodities. These include the MIAX Exchange Group — which is composed of MIAX, MIAX Pearl, MIAX Pearl Equities, MIAX Emerald, and MIAX Sapphire — and the Minneapolis Grain Exchange (MGEX). It also owns the Bermuda Stock Exchange and Dorman Trading, a Futures Commission Merchant. MIH also has a subsidiary, Miami International Technologies, which is focused on the sale and licensing of trading technology developed by MIAX Exchange Group. [1]

The firm is also the owner of LedgerX, the first-ever approved exchange and clearinghouse for derivatives contracts in digital currencies in the U.S. [2]

Despite its name, MIH is headquartered in Princeton, New Jersey. [3]

History

MIH launched the Miami International Securities Exchange (MIAX) in 2012, after receiving approval from the U.S. Securities and Exchange Commission (SEC). [4] [5]

In 2019, MIH acquired a majority stake in the Bermuda Stock Exchange.

The company received approval from the SEC and launched MIAX Pearl Equities, MIH's first equities exchange, in 2020. [6] MIAX Pearl Equities received backing and support from member firms such as IMC Financial Markets, Susquehanna International Group, Two Sigma Investments, Hudson River Trading, and Chicago Trading Company. [7] [8] The exchange also became a participant in the UTP Plan.

In 2022, MIH acquired Dorman Trading, a full-service Futures Commission Merchant registered with the Commodity Futures Trading Commission (CFTC). [9] [10] Subsequently, the company filed for a U.S. initial public offering with the SEC. [11] MIH's equities exchange, MIAX Pearl Equities, reached a market share of 0.99% at the end of the same year. [12]

On April 25, 2023, MIH entered into an agreement to acquire LedgerX, a subsidiary of FTX and a CFTC-regulated exchange and clearinghouse for Bitcoin and Ethereum options and futures, in connection with the bankruptcy proceedings of FTX. [13]

On October 17, 2023, MIH announced that it had filed the Form 1 application to the SEC to register MIAX Sapphire, a new exchange for U.S. options. The exchange is expected to commence trading operations in the second quarter of 2024. [14]

In November 2023, MIH announced plans to open a new options trading pit and offices in Miami's Wynwood neighborhood, which would house MIH's new trading venue, MIAX Sapphire. [15] [16] The new exchange, MIH's fourth options exchange, would include a physical trading floor in Miami, the first of its kind. [3]

In 2024, the firm named former Citadel Securities executive Troy Kane CEO of its newly-formed futures business, MIAX Futures. [17]

SPIKES Volatility Index

Through its MIAX options exchanges, MIH also provides the Spikes Volatility Index and Spikes futures, the only other volatility index used to measure US stock market volatility other than Cboe's VIX index. [18]

Lawsuits

In 2017, Nasdaq brought forward a lawsuit against MIH claiming the latter used trade secrets to create MIAX's trading platforms and obtain a patent. [19] [20] In its suit, Nasdaq alleged that at least 15 of its former employees joined MIH and that three of them had forwarded technical documents to their personal emails before joining the rival firm. [21] MIH countered with its own suits, arguing that seven of Nasdaq's existing patents tried asserted claim over the invention of options trading. [22]

In 2020, after the SEC granted MIH to offer its SPIKES futures product on its MIAX options exchanges, rival firm Cboe Global Markets sued to stop the product from being listed. [23]

See also

Related Research Articles

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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.

References

  1. ↑ "About MIAX". Archived from the original on 2023-01-14. Retrieved 2023-01-14.
  2. ↑ "LedgerX gets U.S. approval for derivatives on digital currencies". Reuters.
  3. 1 2 "A New Options Trading Floor Could Be Coming to Miami". WSJ. Wall Street Journal.
  4. ↑ "ISE files for second US options exchange". Financial Times.
  5. ↑ "Nasdaq to launch third options exchange". Financial Times.
  6. ↑ "MIAX to launch 16th US stock exchange following SEC approval". S&P Global.
  7. ↑ Osipovich, Alexander; Banerji, Gunjan (4 March 2019). "As Stock Exchanges Multiply, Miami Wants In on the Game". Wall Street Journal.
  8. ↑ "Miami International to launch cash equities exchange".
  9. ↑ "MIAX acquires CFTC-registered FCM Dorman Trading". 24 October 2022.
  10. ↑ "Traders Magazine". 24 October 2022.
  11. ↑ "MIAX-parent Miami International Holdings confidentially files for U.S. IPO". Reuters. 6 May 2022.
  12. ↑ "MIAX Exchange Group Has Record Volumes". Markets Media Group. 11 January 2023.
  13. ↑ "FTX's LedgerX Derivatives Exchange Sold to Miami International Holdings in Bankruptcy Auction". 25 April 2023.
  14. ↑ "MIAX Sapphire, LLC; Notice of Filing of Application for Registration as a National Securities Exchange Under Section 6 of the Securities Exchange Act of 1934". Federal Register.
  15. ↑ "Miami Exchange Preps Trading Floor in Wynwood During Options Boom". Bloomberg.
  16. ↑ "Miami-based securities exchange company secures 38,000-square-foot office in Wynwood". South Florida Business Journal.
  17. ↑ "Miami Exchange Names Citadel Securities' Kane Head of Futures". Bloomberg.
  18. ↑ "VIX Fear Competitor Gets Three More Months to Fight for Survival". Bloomberg.
  19. ↑ "Nasdaq v. IEX Group: Nasdaq sues (again) a fledgling stock-exchange operator". Harvard Journal of Law & Technology. 13 April 2018.
  20. ↑ "Nasdaq Avoids Dismissal of Trade Secrets Suit Against Rival MIAX". Bloomberg Law.
  21. ↑ "Nasdaq Sues Rival Exchange, Alleging Stolen Tech Secrets". Bloomberg.
  22. ↑ "Nasdaq Options Trading Patents Challenged by Rival MIAX Exchange". Bloomberg.
  23. ↑ "VIX Fear Gauge's Only Competitor Set to Vanish From the Market". Bloomberg.
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