2025-06115Notice

MIAX Introduces Rules for Broker Error Accounts

Published Date: 4/10/2025

Notice

Summary

MIAX Sapphire is rolling out a new rule to handle mistakes made by Floor Brokers on the trading floor, making sure error accounts are clear and well-managed. They also fixed a small wording issue in an existing rule to keep things neat. This change kicks in right away and helps keep trading smooth and fair for everyone involved.

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Floor Brokers must use error accounts

If you are a Participant that conducts business as a Floor Broker on the Exchange and are not self-clearing, you must establish and maintain an account with a Clearing Member solely to carry positions that result from bona fide errors. This requirement was filed on April 1, 2025 and became effective upon filing.

Detailed error-account recordkeeping required

Each Floor Broker Participant must make available, upon request, accurate and complete records of all trades cleared in its error account. Records must include 13 audit-trail elements such as: security name or symbol; quantity; transaction price; time of execution; executing and contra badge numbers; clearing firm identifiers; whether the account was a Participant's; the nature and amount of the error; how the error was resolved; and the aggregate liability outstanding or cleared.

Options error accounts must be with an OCC member

For option transactions, a Floor Broker's error account must be maintained with an entity that is also a member of The Options Clearing Corporation. This is part of the rule change filed April 1, 2025 and effective upon filing.

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Key Dates

Effective Date
Published Date
4/1/2025
4/10/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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