Alerts

FINRA is proposing to change references in the Codes of Arbitration Procedure (‘‘Codes’’) from the Neutral List Selection System to the list selection algorithm.

Please refer to the following Regulatory Circulars for more information:

• MIAX Options RC 2022-57
• MIAX Pearl Options RC 2022-51
• MIAX Emerald Options RC 2022-53
• MIAX Pearl Equities RC 2022-10

Inquiries should be directed to Regulatory@MIAXOptions.com or (609) 897-7309.

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Beginning September 29, 2022, MIAX Pearl Equities will change the Route to Primary Auction (“PAC”) time for routing to a closing auction from 3:45:00 p.m. Eastern Time to 3:49:59 p.m. Eastern Time (12:49:59 p.m Eastern Time on trading days with an early close). 
 
Please refer to MIAX Pearl Equities RC 2022-09 for more details.

For additional detail on the operation of the PAC routing strategy, please contact Sales at Sales@MIAXEquities.com or (609) -897-8177.
 
For questions regarding the PAC routing strategy, please contact Trading Operations at TradingOperations@MIAXEquities.com or (609) 897-7302.
 
Direct Regulatory inquiries to Regulatory@MIAXEquities.com or (609) 897-7309.

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Overview:

As previously announced in the April 19, 2022, and September 19, 2022 Alerts, the MIAX Exchange Group will be participating in the 2022 SIFMA BCP Testing on Saturday, October 15, 2022.  All Members that are required to test with MIAX Options, MIAX Pearl Options, MIAX Emerald Options and/or MIAX Pearl Equities Exchanges in accordance with Regulation Systems Compliance and Integrity (Regulation SCI) were notified on April 5, 2022.  However, all Members are encouraged to test. 

All Exchange designated Members are required to maintain connection to the MIAX Disaster Recovery (DR) environment for a twelve (12) month period after receiving notification for mandatory testing. All of the Exchanges will operate out of the Chicago (CH4) Disaster Recovery site for the scheduled test.

Designation Standards - Business Continuity and Disaster Recovery Plans Testing Member:

• MIAX Options Exchange  MIAX_Options_RC_2021_80
• MIAX PEARL Options Exchange MIAX_PEARL_RC_2021_72
• MIAX Emerald Options Exchange  MIAX_Emerald_RC_2021_76
• MIAX PEARL Equities Exchange MIAX_PEARL_Equities_RC_2021_03

Contact - for test day support, to coordinate participation or to arrange connectivity testing:

• MIAX Trading Operations at TradingOperations@MIAXOptions.com or (609) 897-7302

Pre-Testing:

• Availability to the DR environments for each of the MIAX Exchanges will be available:
  • Saturday, October 1, 2022, between 8:00AM - 1:00PM EST
    • Application layer connectivity testing
  • Monday, October 10, 2022 through Friday, October 14, 2022, between 8:00AM - 5:30PM EST
    • Unicast telnet testing only

MIAX Options, MIAX Pearl Options & MIAX Emerald Options Exchanges BCP Testing Requirements
Members mandated to participate in accordance with Regulation SCI are obligated, at a minimum, to demonstrate the following:

Electronic Exchange Members (EEM)

• Send at least two orders in any of the options listed below
• Receive at least one execution in any of the options listed below

Market Makers (MM)

• MIAX Options Exchange:
  • Send at least one two-sided quote in any of the options listed below
  • Receive at least one execution in any of the options listed below
• MIAX Pearl Options Exchange:
  • Send at least one two-sided order in any of the options listed below
  • Receive at least one execution in any of the options listed below
• MIAX Emerald Options Exchange:
  • Send at least one two-sided quote in any of the options listed below
  • Receive at least one execution in any of the options listed below

Options

1. AAPL - JAN 20 23 – C – 170
2. AAPL - JAN 20 23 – P – 170
3. BAC - NOV 18 22 – C – 39
4. BAC - NOV 18 22 – P – 39
5. GE - JAN 20 23 – C – 85
6. GE - JAN 20 23 – P – 85
7. MSFT - JUN 16 23 – C – 300
8. MSFT - JUN 16 23 – P – 300
9. SPY - DEC 16 22 – C – 445
10. SPY - DEC 16 22 – P – 445
11. SPIKE - NOV 16 22 – C – 26
12. SPIKE - NOV 16 22 – P – 26

MIAX Pearl Equities Exchange BCP Testing Requirements
Equity Members mandated to participate in accordance with Regulation SCI are obligated, at a minimum, to demonstrate the following:

• Send at least two orders in any of the equity symbols listed below
• Receive at least one execution in any of the equity symbols listed below

Equities

1. Symbol - NTGR
2. Symbol - ZVZZT
3. Symbol - NTEST

October 15, 2022 Test Day Timeline:

• 08:30 - Firms can connect to the Trading Systems and enter Orders and Quotes
• 09:15 - Live Quote Window will open
• 09:30 - Opening
• 13:00 – Closing

Test Completion:

• Once a firm has completed testing, please confirm with MIAX Trading Operations at TradingOperations@MIAXOptions.com

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Effective October 1, 2022, MIAX Pearl Equities, in coordination with all U.S. equities exchanges, will update the existing clearly erroneous execution (“CEE”) rules and procedures. CEE filing procedures require filings to be submitted online using the Clearly Erroneous Execution Form found on the MIAX Pearl Equities Website.

Please refer to the following Regulatory Circular for more information:

• MIAX Pearl Equities RC 2022-08

Direct Regulatory inquiries to Regulatory@MIAXEquities.com or (609) 897-7309.

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MIAX Pearl Equities will make the following changes to its billing and collection process beginning with the October 2022 billing cycle:

• DTCC Direct Debit/Collection Date Change
  • The Collection Date for Exchange and Section 31 fees will be changed to the 9th business day of each month.
  • Based on the revised date, the October 2022 Exchange Fee & Section 31 Fee will now be collected on November 11, 2022.  
• Invoice Distribution Date Change
  • The Exchange Fee & Section 31 invoice distribution date will change to the 10th business day of each month.
  • Based on the revised billing date, the October 2022 Exchange Fee & Section 31 Fee invoices will now be distributed on November 14, 2022.

For additional information or to learn more about Pearl Equities please contact Sales@MIAXEquities.com, (609) 897-8177 or visit MIAXEquities.com.

All other questions can be directed to MIAX Trading Operations at TradingOperations@MIAXEquities.com or (609) 897-7302.

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Overview:

As previously announced in the April 19, 2022 Alert, the MIAX Exchange Group will be participating in the 2022 SIFMA BCP Testing on Saturday, October 15, 2022.  All Members that are required to test with MIAX Options, MIAX Pearl Options, MIAX Emerald Options and/or MIAX Pearl Equities Exchanges in accordance with Regulation Systems Compliance and Integrity (Regulation SCI) were notified on April 5, 2022.  However, all Members are encouraged to test. 

All Exchange designated Members are required to maintain connection to the MIAX Disaster Recovery (DR) environment for a twelve (12) month period after receiving notification for mandatory testing. All of the Exchanges will operate out of the Chicago (CH4) Disaster Recovery site for the scheduled test.

Designation Standards - Business Continuity and Disaster Recovery Plans Testing Member:

• MIAX Options Exchange  MIAX_Options_RC_2021_80
• MIAX PEARL Options Exchange MIAX_PEARL_RC_2021_72
• MIAX Emerald Options Exchange  MIAX_Emerald_RC_2021_76
• MIAX PEARL Equities Exchange MIAX_PEARL_Equities_RC_2021_03

Contact - for test day support, to coordinate participation or to arrange connectivity testing:

• MIAX Trading Operations at TradingOperations@MIAXOptions.com or (609) 897-7302

Pre-Testing:

• Availability to the DR environments for each of the MIAX Exchanges will be available:
  • Saturday, September 24, 2022, between 8:00AM - 1:00PM EST
    • Application layer connectivity testing
  • Saturday, October 1, 2022, between 8:00AM - 1:00PM EST
    • Application layer connectivity testing
  • Monday, October 10, 2022 through Friday, October 14, 2022, between 8:00AM - 5:30PM EST
    • Unicast telnet testing only

MIAX Options, MIAX Pearl Options & MIAX Emerald Options Exchanges BCP Testing Requirements
Members mandated to participate in accordance with Regulation SCI are obligated, at a minimum, to demonstrate the following:

Electronic Exchange Members (EEM)

• Send at least two orders in any of the options listed below
• Receive at least one execution in any of the options listed below

Market Makers (MM)

• MIAX Options Exchange:
  • Send at least one two-sided quote in any of the options listed below
  • Receive at least one execution in any of the options listed below
• MIAX Pearl Options Exchange:
  • Send at least one two-sided order in any of the options listed below
  • Receive at least one execution in any of the options listed below
• MIAX Emerald Options Exchange:
  • Send at least one two-sided quote in any of the options listed below
  • Receive at least one execution in any of the options listed below

Options

1. AAPL - JAN 20 23 – C – 170
2. AAPL - JAN 20 23 – P – 170
3. BAC - NOV 18 22 – C – 39
4. BAC - NOV 18 22 – P – 39
5. GE - JAN 20 23 – C – 85
6. GE - JAN 20 23 – P – 85
7. MSFT - JUN 16 23 – C – 300
8. MSFT - JUN 16 23 – P – 300
9. SPY - DEC 16 22 – C – 445
10. SPY - DEC 16 22 – P – 445
11. SPIKE - NOV 16 22 – C – 26
12. SPIKE - NOV 16 22 – P – 26

MIAX Pearl Equities Exchange BCP Testing Requirements
Equity Members mandated to participate in accordance with Regulation SCI are obligated, at a minimum, to demonstrate the following:

• Send at least two orders in any of the equity symbols listed below
• Receive at least one execution in any of the equity symbols listed below

Equities

1. Symbol - NTGR
2. Symbol - ZVZZT
3. Symbol - NTEST

October 15, 2022 Test Day Timeline:

• 08:30 - Firms can connect to the Trading Systems and enter Orders and Quotes
• 09:15 - Live Quote Window will open
• 09:30 - Opening
• 13:00 – Closing

Test Completion:

• Once a firm has completed testing, please confirm with MIAX Trading Operations at TradingOperations@MIAXOptions.com

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MIAX Pearl Equities (EPRL) has published updated MIAX Express Orders Interface (MEO) and FIX Order Interface (FOI/FXD) specifications to support changes to ClOrdID uniqueness from per-MPID to per-Session within a matching engine.

The changes for each specification are as follows:

• MIAX Express Orders (MEO) – v2.1c
  • MIAX Pearl Equities will validate that Client Order ID is unique across all open orders for the Session (formerly MPID) within a Matching Engine. However, firms are responsible to ensure uniqueness across all orders sent during the trading day.
• FIX Order Interface (supports both FOI and FXD) – v2.1c
  • MIAX Pearl Equities will validate that ClOrdID is unique across all open orders for the Session (formerly MPID) within a Matching Engine. However, firms are responsible to ensure uniqueness across all order requests sent during the trading day.

Important Dates

• The new feature is currently available in EPRL Firm Test Bed (FTB2)
• The new feature is targeted to be activated in production as follows:
  • Day 1: Matching Engine Environment 23 (Symbols Y – ZZZ)
    • Wednesday, September 28, 2022
  • Day 2: Matching Engine Environment 1-11 (Symbols A – MZZ)
    • Thursday, September 29, 2022
  • Day 3: Matching Engine Environments 12 – 22 & 24 (Remaining Symbols)
    • Friday, September 30, 2022

Please review the updated EPRL Interface Specifications and the MIAX Exchange Group Connectivity Guide for further details.

For further information or to arrange testing, please contact MIAX Trading Operations at TradingOperations@MIAXEquities.com or (609) 897-7302.

Regulatory inquiries should be directed to Regulatory@MIAXEquities.com or (609) 897-7309.

To learn more about Pearl Equities please contact Sales@MIAXEquities.com, (609) 897-8177 or visit MIAXEquities.com.


 

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As previously announced in the August 15 Alert, the MIAX Pearl Equities (EPRL) Exchange published updated Interface Specifications to support system enhancements outlined below.  The deployment of these enhancements into the firm test bed will be deferred to Wednesday, October 5, 2022 (previously announced as September 15, 2022).

New Order Type - Primary Peg Order:

• Available to be used via FIX or the MIAX Express Orders (MEO) binary interface, a Primary Peg Order to buy (sell) will be assigned a working price pegged to the National Best Bid (National Best Offer), subject to its limit price.
• A Primary Peg Order will be non-displayed by default on the MIAX Pearl Equities Book, however the member may elect to have the order be displayed.
• A member may, but is not required to, select an offset equal to or greater than one minimum price variation (“MPV”) for the security (“Primary Offset Amount”)
  • The Primary Offset Amount for a non-displayed Primary Peg Order may be passive or aggressive.
  • The Primary Offset Amount for a displayed Primary Peg Order must be passive.
• Specification Updates:
  • FIX Interface Specification (FOI, FXD, OFXD) – Version 2.2
    • Added support for Primary Peg orders in New Order – Single
    • Added PegOffset in Execution Report
  • MIAX Express Orders (MEO) – Version 2.2
    • Added support for Primary Peg orders in New Order Request
    • Added new error code in New Order Response
    • Added Peg Offset field in the New Order Notification

Enhanced Risk Protections Suite:

• The following protections will be added to the MIAX Pearl Equities existing risk protections suite (pending filing with the SEC):
  • Per Order Risk Metrics
    • Short Sale Exempt Reject
    • Market Order Reject
    • Average Daily Volume (ADV) Check
    • Regulation SHO Security List Reject
    • Restricted Security List Reject
    • Non-Agency Reject
    • Override Capacity to Agency
  • Cumulative Risk Metrics
    • Maximum Gross Notional Open Value Protection
    • Maximum Net Notional Open Value Protection
    • Order Rate Protection
  • Trade Risk Metrics
    • Market Impact Collar
    • Self-Trade Protection Parent Group Level
  • Mass Cancellation Capabilities
    • Purge Group
• Specification Updates:
  • FIX Interface Specification (FOI, FXD, OFD) – Version 2.2
    • Updated the list of available Risk Protections for orders entered via FOI
    • Added Parent Group as a new Self Trade Protection Level in New Order - Single
    • Added Purge Group to support cancellation by Purge Group in New Order - Single
    • Added support for accepting Locate Account in New Order – Single and Order Cancel/Replace Request
    • Added Purge Group, Locate Account and Original Order Capacity in Execution Report
    • Added a note explaining the value that will be received in the Capacity field on the Execution Report
  • MIAX Express Orders (MEO) – Version 2.2
    • Updated the list of available Risk Protections for orders entered via MEO
    • Added Parent Group as a new Self Trade Protection Level in New Order Request
    • Added Purge Group to support cancellation by Purge Group in the New Order Request and Mass Cancel Request
    • Added support for accepting Locate Account in New Order Request and Modify Order Request
    • Added new error codes for New Order Response, Modify Order Response, Mass Cancel Response and Cancel/Reduce Size Order Notification.
    • Added Purge Group in New Order Notification
    • Added Locate Account in New Order Notification, Modify Order Notification and Execution Notification
    • Added new field Original Order Capacity in New Order Notification and Execution Notification
    • Added a note explaining the value that will be received in the Capacity field on the New Order Notification

Important Dates

• An updated version of the Port Attributes with the new Risk Protections is currently available here
• The above features will be available in EPRL Firm Test Bed (FTB2) on October 5, 2022 (previously September 15, 2022)
• A User Guide for the Enhanced Risk Protections Suite will be made available on October 2022
• The above features are targeted to be available in production in Q4 2022 (pending filing with the SEC). The specific production rollout date will be announced with an alert at a later date.

Please review the updated EPRL Interface Specifications and the MIAX Exchange Group Connectivity Guide for further details.

For further information or to arrange testing, please contact MIAX Trading Operations at TradingOperations@MIAXEquities.com or (609) 897-7302.

Regulatory inquiries should be directed to Regulatory@MIAXEquities.com or (609) 897-7309.

To learn more about Pearl Equities please contact Sales@MIAXEquities.com, (609) 897-8177 or visit MIAXEquities.com.

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Please be advised the MIAX Exchanges will observe a one minute moment of silence at 9:20 A.M. Eastern on Friday, September 9, 2022 to honor 9/11 victims, survivors, and their families.
 
While trading will not be affected, we encourage our members and participants to join us in this silent tribute.

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Full details can be found in the attached press release.

For further information, please visit www.MIAXOptions.com or contact MIAX Trading Operations at TradingOperations@miami-holdings.com.

For corporate communications, contact Andy Nybo at (609) 955-2091 or anybo@miami-holdings.com. 
MIAX Press Release 09072022

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