MIAX Options Exchange Enters into Strategic Transaction with Six Exchange Members: Bank of America-Merrill Lynch, Interactive Brokers Group, KCG Holdings, Inc., Morgan Stanley, Susquehanna International Group and Wolverine
PRINCETON, N.J., Oct. 1, 2013 /PRNewswire/ -- The MIAX Options Exchange (MIAX) today announced it has completed its equity rights transaction whereby six leading order flow providers and market making MIAX Exchange Member firms entered into strategic agreements providing these members with the right to invest in the Exchange's parent holding company, Miami International Holdings, Inc. (MIH) in exchange for payment of an initial purchase price or the prepayment of certain transaction fees and the achievement of certain liquidity addition volume thresholds on the Exchange. The MIAX Exchange Member firms involved in the transaction are: Bank of America-Merrill Lynch, Interactive Brokers Group, KCG Holdings, Inc., Morgan Stanley, Susquehanna International Group and Wolverine. The terms of the agreement are contained in a MIAX Rule filing that was filed on September 13, 2013 with the United States Securities and Exchange Commission.
Thomas P. Gallagher, MIAX's Chairman and Chief Executive Officer said, "This is truly a major milestone for MIAX and an achievement that we have envisioned since the founding of MIH. A MIAX member's ability to acquire an equity interest in MIH is a concept that was well received by members of the Exchange, and we are privileged to provide the opportunity to Exchange Members who have participated in this unique strategic transaction."
"The Equity Rights Program is highly beneficial for all parties," said Douglas M. Schafer, Executive Vice President and Chief Information Officer at MIAX. "It enables MIAX to enhance its competitiveness with other options exchanges and strengthen its market. The Equity Rights Program also allows our strategic partners to align themselves with an options exchange that offers a very reliable platform with the fastest response times in the industry."
Paul Brody, Chief Financial Officer of Interactive Brokers Group commented, "Today we are a major customer of the MIAX Options Exchange as a result of our confidence in the management team, their customer service and the reliability of their platform. We look forward to strengthening this relationship as they develop their other businesses at both the MIAX Options Exchange and their holding company, MIH. We are very proud to be an owner of MIH and congratulate this very entrepreneurial achievement."
John DiBacco, the Global Head of Equities Trading of KCG Holdings, Inc. stated "We are pleased to join this strategic partnership with the MIAX Options Exchange, a highly competitive platform with a great management team. KCG looks forward with mutual excitement to further progress and innovation from the MIAX team."
Talal Jassim Al-Bahar, the Chairman of the IFA Group based in Kuwait City, Kuwait and also a member of the Board of Directors of Miami International Holdings commenting on today's developments stated, "We have watched the MIAX Options Exchange grow from being just a concept at the time of our initial investment to reality over the past 5 years. Today we are happy to have partnered with a team of true entrepreneurs who have quickly shown the marketplace that they can build and successfully operate an industry-leading equity options trading platform while at the same time providing great customer service to the industry. We wish the MIAX team continued success in their endeavors."
In conclusion, Mr. Gallagher stated, "On behalf of MIAX, I would like to thank those Exchange Members who have decided to become our strategic partners through their participation in the Equity Rights Program, all of our investors and dedicated employees and the Boards of Directors of both MIH and MIAX for their continued support and backing. We thank our shareholders from the United States and other countries around the world for their unwavering trust in us. By closing this deal today, we have received 6 major endorsements of our Exchange."
For further information regarding the MIAX Options Exchange, including fee schedule, news and recent developments, member onboarding, and technology onboarding, including specifications and requirements, please visit www.MIAXOptions.com or contact MIAX Trading Operations at TradingOperations@MIAXOptions.com.
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About MIAX and MIH
MIAX, which commenced operations on December 7, 2012, is a fully electronic options trading exchange approved by the SEC as a national securities exchange on December 3, 2012. MIAX has assembled a team with deep rooted experience in developing, operating and trading on options exchanges. Its trading platform has been developed in-house and designed from the ground up for the unique functional and performance demands of derivatives trading. MIAX Options now lists and trades options on the majority of the top 600 multiply listed classes. The MIAX Options Exchange's unparalleled system throughput is in excess of 24 million quotes per second. The average latency for a single quote on MIAX is 27.6 microseconds for a full round trip. At the 99th percentile, the latency on MIAX is 39.7 microseconds. At the 99.9th percentile, the latency on MIAX is 56.4 microseconds. The MIAX executive offices and technology development center as well as the National Operations Center for the MIAX Options Exchange are located in Princeton, New Jersey.
MIAX and Miami International Technologies, LLC (MIAX Technologies) are wholly-owned subsidiaries of Miami International Holdings, Inc. (MIH). MIAX Technologies is the Company's technology subsidiary for the sale and/or license of the MIAX trading technology. MIAX intends to launch the MIAX Equities Exchange and plans to pursue Latin American equity listings. The launch of the MIAX Equities Exchange is subject to SEC approval. The MIAX Futures Exchange is also planned as a follow-on initiative. The launch of the MIAX Futures Exchange is subject to CFTC approval.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
The press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities of MIH, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such offer; solicitation or sale would be unlawful. This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the plans, objectives, expectations and intentions and other statements that are not historical or current facts of MIH, together with its subsidiaries, including MIAX (the "Company"). Forward-looking statements include, but are not limited to, statements about the possible or assumed future results of operations of the Company; the competitive position of the Company; potential growth opportunities available to the Company; the expectation with respect to securities, options and future markets and general economic conditions; the effects of competition on the Company's business; and the impact of future legislation and regulatory changes on the Company's business. Forward-looking statements are based on the Company's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements.
SOURCE MIAX Options Exchange