what's going on everyone Charlie here good morning we have a quite a bit of filings to
talk about we have one first up out of the MIAX Emerald and that's an options exchange
this is SR-MIAX-2021-37, Notice of Filing and Immediate Effectiveness of a Proposed Rule Change
to Amend its Fee Schedule to Adopt a Tiered Pricing Structure. We saw a very similar filing
the other day out of the MIAX Pearl so this is the almost the exact same thing I'm going to run
through this real quick to reiterate the purpose of this they're going to amend their fee schedule
and if you've been following me now for a while you know that anything fee related
is likely due to market share liquidity competition intra-market competition uh
inter market competition all that good stuff so I'm just gonna run through these uh super notes
real quick and uh just briefly go over this so that they're proposing to amend the fee schedule
to adopt a tiered pricing structure just like we saw in the MIAX Pearl and they're going to
basically adopt additional limited service interfaces for market makers now the mix express
interface specifically is a connection to MIAX system that enables market makers
to submit simple and complex electronic quotes to MIAX so they're going to add a tiered structure
to that to enable competition to be brought to the exchange now they believe a tiered pricey
structure will encourage market makers to be more efficient and economical when determining how to
connect to the exchange this should also enable the exchange to better monitor and provide access
the exchange's network to ensure sufficient capacity and headroom in the system
same purpose as the pearl now again the system means the automated trading system used by the
exchange and the term market maker refers to lead market makers primary lead market makers
and registered market makers collectively so additional limited service MEI port tiered
pricing structure so the exchange proposes to amend the fees basically to their limited
service MEI ports currently they go on to explain that they'll allocate two full service ports and
two limited service ports per matching engine to which each market maker connects market makers may
also request additional limited service ports for each matching engine to which they connect
the full service port limited service port and the additional limited service port
all include access to the exchange's primary and secondary data centers and its disaster recovery
center market makers may request additional limited ports for which they are assessed
a 100 dollar a month monthly fee for each additional limited service port the this fee has
been unchanged since 2016. badass so super notes real quick uh if you wanted to look into that
chain or that rule that's been unchanged that fee that's been changed it's giving you a
reference to mi ax 2016-47 now a full-service port provide market makers with the ability to send
market maker quotes e-quotes and quote purged messages to the system now full ports are also
capable of receiving administrative information market makers are limited to two full service
ports per matching engine now limited service ports provide market makers with the ability
to send e-quotes and quote purge messages only but not market maker quotes to the MIAX system limited
ports are also capable of receiving administrative information same thing applies there with the two
ports per system or per engine and a matching engine is part of the MIAX electronic system
that processes option quotes and trades on simple by simple basis
some matching engines will process option classes with multiple root symbols
and other matching engines will be dedicated to one single option root symbol for example options
on the spy will be processed by one single matching engine that is dedicated only to spy
so the changes uh the third and fourth additional limited service ports for each matching engine
will increase from the current flat monthly fee of 100 to 150 dollars per port the fifth and sixth
additional limited ports for engine matching engine will increase from the current flat monthly
fee of 100 dollars a month to 200 a month per port now the seventh additional limited service port
and each limited service port for each matching engine purchased thereafter will increase their
fee from 100 bucks to 250 bucks per port so if it wasn't for all the super notes and all the other
[ __ ] in there i could just open this PowerPoint been like hey we have a filing out of MIAX
uh they're looking to increase their flat monthly fees for some of their ports on their matching
trading engines for market makers and in essence they're trying to increase their market share
they're trying to incorporate a third-party service into their operational costs
they're changing other costs related items and the main thing market share and competition and
liquidity and to make market makers more efficient um in their quoting so that's basically it this
should be effective as of tomorrow because it's filed in effective immediately and it's sitting
on the register and just to point out as of July 30th 2021 the exchange had a market share of only
6.21 percent of the u.s equity options industry for the month of July 2021. Booyah! I said
they're gonna need about a little bit more than double that to meet that incentive so
have a good one and they say right here the exchange is not aware of any evidence
that a market share of approximately six to seven percent provides the
exchange with anti-competitive pricing power badass see y'all on the next one