U.S. Options

Please be advised that MIAX Options has identified and resolved a technical issue related to quote mitigation behavior that had the potential to cause the display of a stale MIAX Options Best Bid or Offer (MBBO) for a brief period of time.

The issue was addressed in a hotfix release on July 10, 2018.

All of the following pre-conditions must have existed for the issue to occur:

• More than one internal (non-published) MBBO update occurs inside a single transaction
• At least one reportable MBBO update is generated but is not the last update in the transaction
• The last internal MBBO update is a mitigated size increase from the previously posted MBBO

Upon completion of the transaction under these conditions, the aggregate effect of the update was erroneously mitigated until the next MBBO update. 

MIAX Options' investigation of this issue showed that approximately 0.0000008% of published MBBO's were impacted (1,900 erroneously disseminated quotations of 228 billion published MBBO's over a six-month sample period from January 2, 2018 - June 30, 2018). There were a total of 140 attempts to interact with 65 of the 1,900 erroneously disseminated quotations that did not result in a firm quote execution during the review period.  The average duration of the erroneous MBBO quotations over the review period was 0.07 seconds.  The median duration was .005 seconds.

If you have any questions please contact Trading Operations at (609) 897-7302 or TradingOperations@miaxglobal.com.

Please direct any regulatory questions to the Regulatory Department at (609) 897-7309 or Regulatory@miaxglobal.com.