MIAX Pearl Equities (MIAX), is an American

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

headquartered in

Princeton, New Jersey The Municipality of Princeton is a Borough (New Jersey), borough in Mercer County, New Jersey, United States. It was established on January 1, 2013, through the consolidation of the Borough of Princeton, New Jersey, Borough of Princeton and Pri ...

. The exchange also has offices in Miami, Florida, where its parent company

Miami International Holdings MIAX’s parent holding company, Miami International Holdings, Inc., owns Miami International Securities Exchange, LLC (MIAX®), MIAX PEARL, LLC (MIAX Pearl®), MIAX Emerald, LLC (MIAX Emerald®), MIAX Sapphire LLC (MIAX Sapphire™), MIAX Futur ...

is based.

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. Prior to this, MIH had already set up three equity options exchanges in the US. According to then-Chairman and CEO Tom Gallagher, MIH hoped to complement its options offerings and later break into the listings business. On August 18, 2020, the

Securities Exchange Commission The United States Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street crash of 1929. Its primary purpose is to enforce laws against market ma ...

approved MIH's filing to register the stock exchange, paving the way for its launch. MIAX Pearl Equities was launched in September 2020, in the same month as the

Long-Term Stock Exchange Eric Ries (born September 22, 1978) is an American entrepreneur, blogger, and author of ''The Lean Startup'', a book on the lean startup movement. He is also the author of ''The Startup Way'', a book on modern entrepreneurial management. Early l ...

and

Members Exchange 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, clai ...

. This brought the total number of US stock exchanges at the time to 16, with MIAX Pearl Equities being the latest entrant. Initially, the exchange raised $22 million by selling prepaid blocks of fees to a group of market makers that included

Citadel Securities Citadel Securities LLC is an American market making firm headquartered in Miami, Florida. It provides liquidity and trade execution to retail and institutional clients. The firm also trades futures, equities, credit, options, currencies, a ...

and

UBS UBS Group AG (stylized simply as UBS) is a multinational investment bank and financial services firm founded and based in Switzerland, with headquarters in both Zurich and Basel. It holds a strong foothold in all major financial centres as the ...

. 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 The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

and

Nasdaq The Nasdaq Stock Market (; National Association of Securities Dealers Automated Quotations) 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 ...

offered, in hopes of gaining market share and trading volume. The exchange began trading on September 29, 2020, initially offering only a single low-volume symbol,

Netgear Netgear, Inc. (stylized as NETGEAR in all caps), is an American computer networking company based in San Jose, California, with offices in about 22 other countries. It produces networking hardware for consumers, businesses, and service provide ...

(NTGR), 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.

Operations

Fees

MIAX Pearl Equities is positioned as a lower cost alternative to its larger rivals such as

NYSE The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is the List of stock exchanges, largest stock excha ...

and

. 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.

Clearing

As of April 2024, clearing members of the exchange include major banks such as

Goldman Sachs The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many internationa ...

and

JP Morgan JPMorgan Chase & Co. (stylized as JPMorganChase) is an American multinational finance corporation headquartered in New York City and incorporated in Delaware. It is the largest bank in the United States, and the world's largest bank by mar ...

, and also equity market makers such as

Jane Street Capital Jane Street Capital is an American proprietary trading firm headquartered in New York City. It employs more than 2,600 people in six offices in New York City, London, Hong Kong, Amsterdam, Chicago, and Singapore, and trades a broad range of asset ...

and

Hudson River Trading Hudson River Trading is an American quantitative trading firm headquartered in New York City and founded in 2002. In 2014, it accounted for about 5% of all trading in the United States. Hudson River Trading employs over 800 people in offices aro ...

National Market System

The exchange is a participant of several

National Market System The National Market System (NMS) is a regulatory mechanism that governs the operations of securities trading in the United States. Its primary focus is ensuring transparency and full disclosure regarding stock price quotations and trade executions. ...

plans, including the

Consolidated Tape Association The Consolidated Tape Association (CTA) oversees the Securities Information Processor that disseminates real-time trade and quote information (market data) in New York Stock Exchange (NYSE) and American Stock Exchange (AMEX) listed securities (st ...

Unlisted Trading Privileges 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. Acquisition and distribution of market data Nasdaq ...

, Consolidated Audit Trail (CTA), and Limit Up-Limit Down (LULD).

Market data

Through its affiliate

Bermuda Stock Exchange The Bermuda Stock Exchange (BSX), established in 1971, is located in Hamilton, Bermuda. The stock exchange's 2010 'Year End Review' report stated that its aggregate market capitalisation (excluding mutual funds) stood at US$319 billion. The e ...

, MIAX Pearl Equities publishes its market data to the Pyth Network, a decentralized service that provides real-time market data on the Solana blockchain.

Matching engine

The exchange's trading system is situated in the

Equinix Equinix Inc. is an American multinational company headquartered in Redwood City, California. It specializes in internet connectivity and colocation centres, also referred to as carrier hotels. The company converted to a real estate investment t ...

NY4 data center in

Secaucus, New Jersey Secaucus ( ) is a Town (New Jersey), town in Hudson County, New Jersey, Hudson County, in the U.S. state of New Jersey. As of the 2020 United States census, the town's population was 22,181, an increase of 5,917 (+36.4%) from the 2010 United St ...

Products

Stocks Stocks are feet and hand restraining devices that were used as a form of corporal punishment and public humiliation. The use of stocks is seen as early as Ancient Greece, where they are described as being in use in Solon's law code. The law de ...

* Exchange-traded funds (ETFs)

References

External links

* {{Stock market Electronic trading platforms Stock exchanges in the United States Companies based in Princeton, New Jersey