This Exchange Has Gained A 16.24% Foothold In Just A Matter Of Years, Disrupting The Industry - How To Trade Some Of The Most Cutting Edge Volatility Products On The Market


Speed and precision. Gaining an edge in either of these is fundamental to success in the modern market. 

The Miami International Securities Exchange, or MIAX, has built its reputation on exactly these two qualities. Speed and precision are at the heart of everything the company does. The global exchange operator is built on advanced, proprietary technology that has allowed it to disrupt the industry and establish itself as a leading exchange in a matter of years, not decades.

The growth is impressive, with monthly volume having reached 142.1 million contracts, a 39.5% increase year-over-year, and representing a monthly market share of 16.24%.

At its core, MIAX is a technology company. It has built one of the most advanced and sophisticated trading platforms in the world that allows it to execute transactions with lighting speed and reliability - since its inception, the exchange has enjoyed a 99.999% uptime.

MIAX, along with its sister exchanges MIAX Emerald, MIAX Pearl, the Minneapolis Grain Exchange (MGEX), and the Bermuda Stock Exchange (BSX), operate markets across many asset classes. Investors can trade options, futures and cash equities, as well as a number of proprietary products. 

These products trade on the MIAX SPIKES Volatility Index SPIKE. The index, like the Cboe Volatility Index VIX, often dubbed the “fear index”, is a measure of the 30-day expected volatility of the SPDR S&P 500 ETF SPY, however, it offers a few key advantages. It is updated every 100 milliseconds, making it nearly real-time. It is also built using a proprietary methodology MIAX calls “price dragging” to buffer the index from erratic movements, making it more accurate and consistent. 

MIAX offers several proprietary products built around SPIKE:

  • SPIKES Options (SPIKE) - Traded on MIAX, these options are european style and cash settled with fully electronic execution.
  • SPIKES Futures (SPK) - Traded on MGEX, these futures have a minimum price increment of $.01, giving traders improved execution prices and lowering costs. This makes the bid/ask spread lower than VIX by roughly $0.2.
  • VSPIKES Index (VSPKE) - A measure of the volatility of SPIKE. VSPIKE measures the volatility of volatility in the market. MIAX believes this is where the price dragging technique really shines, as it provides a more accurate measure and reduces erratic moves.
  • SPKF Index (SPKF) - This measures the return from a daily rolling long position in the SPK traded on the MGEX. It is the basis for the following product.
  • SPIKES ETFs SPKX SPKY - These funds, issued by Convexity Shares, allow investors to gain exposure to SPKF. SPKX provides a 1x position, while SPKY offers a leveraged 1.5X position.

As modern markets evolve, MIAX is taking the lead, empowering traders with the tools they need to navigate an increasingly complex market. With its unwavering commitment to technology, innovation, and reliability, MIAX is shaping the future of volatility.

Featured photo by Nicholas Cappello on Unsplash

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