Options Report: MIAX Eliminates Fees for Dealers for Two Months

The MIAX Options Exchange announced today it would temporarily waive all transaction fees that apply to MIAX market makers for the period beginning June 3, 2013 and ending July 31, 2013. Non-market maker transaction fees and other fees including connectivity and data fees will still remain in effect during this time.

The exchange operator said the fee waiver was intended to “enhance MIAX’s competitiveness with other options exchanges and strengthen its market quality.” MIAX predicts that its spreads will tighten and, therefore, the number of trades will increase.

In addition, MIAX believes that the fee waiver will encourage other market participants not currently registered as market makers on MIAX to join the existing nine MIAX market making firms. Including these nine market making firms, MIAX currently has a total of 32 member firms.

MIAX is the industry’s newest and smallest exchange, with a market share in single stock options of 0.40 percent, according to data published by the Options Clearing Corporation.