MIAX Bloomberg 500 Index futures will be listed on MIAX Futures, pending certain filings with the Commodity Futures Trading Commission (CFTC).  

Elsewhere, MIAX Bloomberg 500 Index options will be listed on MIAX Options, subject to certain filings with and subject to approval from the Securities and Exchange Commission (SEC). 

The new MIAX Bloomberg 500 futures and options products aim to provide competitive fees, increased product choice and more granular contract sizes, offering retail and institutional investors an alternative way to manage US equity market exposure. 

“Our collaboration with MIH to list Bloomberg 500 Index futures and options on its MIAX exchanges reinforces our strategy of expanding the use of Bloomberg equity indices across the financial investment community,” said Umesh Gajria, global head of index-linked product at Bloomberg Index Services Limited.  

“The introduction of these products answers significant pent-up demand for access to an alternative way of managing long and short exposure in the world’s most liquid equity market.” 

Read more: MIAX receives $100 million capital injection from Warburg Pincus  

MIAX Bloomberg 500 Index futures and options are being developed to reach both retail and institutional investor preferences, with a H2 2025 target for trading.  

In addition, Bloomberg 500 Index futures are expected to be the first financial future to be traded on the new MIAX Futures Onyx trading platform, pending filing with the CFTC. 

“We are pleased to provide the industry with a suite of new futures and options products offering a competitive alternative to manage exposure to the 500 largest publicly traded US corporations,” said Thomas Gallagher, chair and chief executive at MIH.  

“I believe our technology, support from strategic exchange members and Bloomberg’s distribution capabilities create a powerful combination to help answer industry demand for alternative ways to hedge and manage risk in US equities and options markets.” 

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Thomas Gallagher

The offering is based on Bloomberg Indices’ portfolio of benchmarks and combines MIH’s expertise in operating the relevant exchanges with Bloomberg’s advanced technological capabilities to “bring much-needed competition to the equity index derivatives industry,” said Thomas Gallagher, chair and chief executive of MIH. 

In the first instance, MIH will offer several equity index products to be exclusively listed and traded on MIH’s exchanges, subject to regulatory approval.

Read more: Miami International Holdings completes acquisition of Dorman Trading

“Bloomberg Indices has invested considerable resources in developing a suite of innovative equity benchmarks covering a broad range of geographies, sectors and industries using our rules-based and transparent methodology,” said Dave Gedeon, chief executive of Bloomberg Indices.

“Our collaboration with MIH to offer financial derivative products based on Bloomberg equity indices will provide the global investment community with a new range of innovative tools to help manage its equity risk exposure.” 

Bloomberg’s suite includes a complete set of global equity index families which cover more than 99% of the eligible free float market cap – specifically across 48 developed and emerging markets.

Its equity indices are available in global, regional, country, and sector exposures and across various currencies and returns for clients. 

Gallagher said: “Our collaboration with Bloomberg Indices will provide the financial industry with access to a broad range of futures and options products designed to meet the needs of both retail and institutional equity investors. 

“We are very encouraged with the long-term potential for our collaboration, particularly given the depth and breadth of Bloomberg’s global distribution capabilities and the growing trend of asset managers, funds, and other investors benchmarking to Bloomberg indices.”

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Based in Chicago, Dorman Trading is a FCM which provides execution and clearing services for introducing brokers, retail customers, institutional clients and professional traders.

Over the last two decades, Dorman Trading has transitioned from primarily serving as a floor clearing business to one focused on clearing electronic trading.

“The acquisition of Dorman Trading is an important part of our strategy to continue growing the products and services we can offer in futures trade execution, listing and clearing,” said Thomas Gallagher, chairman and chief executive of Miami International Holdings.

“We are thrilled to complete this acquisition and look forward to supporting Dorman Trading in expanding its capabilities and the services it offers to customers.”

Piper Sandler & Co. acted as financial advisor to Miami International Holdings for the acquisition of Dorman Trading.

“Dorman Trading is proud of the service-oriented, customer-centric business model we have used to provide clearing services to our customers for the past 40 years,” said Daniel Dorman, senior vice president and chief operating officer of Dorman Trading.

“We are excited to grow our capabilities and services as we embark on this next step in our history, combining Dorman Trading’s experience as an FCM with MIH’s resources and vision.”

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In partnership with Hudson River Trading and CTC Trading Group the new exchange will operate under the MIAX PEARL exchange license.

The venue will launch in Q2 next year pending regulatory approval from the Securities and Exchange Commission.

In a statement announcing the launch, MIH said it has also received backing from existing exchange members IMC, Simplex Trading, Susquehanna Securities, and Two Sigma Securities. Investing participants will gain the right to invest in MIH in exchange for the prepayment of certain transaction fees and the achievement of certain liquidity volume thresholds on MIAX PEARL Equities.

“Now that we have launched three options exchanges and established the MIAX Exchange Group, we have decided to pursue a cash equities exchange to offer the same industry-leading latency, throughput, determinism and customer service that we are recognised for by the options trading industry,” said Douglas M. Schafer, Jr., EVP and CIO of MIH. “Once launched, we are confident that MIAX PEARL Equities will provide members firms with a superior trading experience.”

The MIAX Exchange Group currently consists of three options exchanges – MIAX, MIAX PEARL and MIAX Emerald, and in April 2019 reached a record market share for equity options of 10.75%. MIAX EMERALD launched in March this year.

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