Bloomberg Index Options Get Green Light on MIAX Exchange
Published Date: 5/6/2025
Notice
Summary
MIAX just got the green light to let traders buy and sell options on the Bloomberg US Large Cap Price Return Index, which tracks 500 big U.S. companies. This means more ways to invest with flexible trading times starting after MIAX Futures launches related futures contracts. Investors and traders can look forward to fresh opportunities on this popular index soon!
Analyzed Economic Effects
8 provisions identified: 7 benefits, 1 costs, 0 mixed.
MIAX Approved to List B500 Index Options
The SEC approved MIAX to list and trade options on the Bloomberg US Large Cap Price Return Index (the B500 Index). This approval covers both A.M.- and P.M.-settled index options on the B500 Index and allows MIAX to offer up to twelve standard monthly expirations with European-style exercise.
No Position or Exercise Limits for B500 Options
The Exchange will not impose position or exercise limits on any B500 Index options series. The Exchange will, however, require reporting of large positions and may impose additional margin if needed.
P.M. Settlement Lets Trading Through Expiration
MIAX may list P.M.-settled B500 Index options whose exercise settlement value is based on the closing index value on the expiration day, and trading in such P.M.-settled options may occur through 4:15 p.m. Eastern Time (except last trading day, which ends at 4:00 p.m.). P.M. settlement allows market participants to trade throughout the expiration day and manage overnight exposure up until settlement.
Weekly and End‑of‑Month Expirations Allowed
MIAX can list nonstandard P.M.-settled expirations for the B500 Index, including Weekly Expirations (any Monday–Friday except third Friday) and end-of-month (EOM) expirations on the last trading day of the month. These nonstandard expirations would be treated like standard third‑Friday expirations for trading rules and reporting.
Standard Contract Terms and Trading Increments Set
Each B500 Index option contract will use a $100 multiplier, with minimum tick sizes of $0.05 for options priced below $3.00 and $0.10 for other series, and strike intervals no less than $5.00. The Exchange will apply these contract terms to both standard and nonstandard expirations.
Trading Delayed Until Related Futures Launch
MIAX stated it will not begin trading B500 Index options until (i) MIAX Futures' self-certification filing for B500 futures is past the Commodity Futures Trading Commission's statutory review period, and (ii) MIAX Futures commences listing and trading of B500 Index futures. The Exchange reiterated this timing condition in its filing.
Five‑Year Annual Market Impact Reporting Required
MIAX will provide an Annual Report for five years after launch analyzing the market impact of B500 Index options, including volume, end-of-day open interest, exercised contracts, and trading patterns, and will make underlying data publicly available in machine‑readable format.
Surveillance and Position Reporting to Guard Markets
The Exchange will apply existing surveillance procedures to B500 Index options, review underlying component activity for manipulation, participate in ISG coordination, and require Members to report aggregate positions of 200 or more B500 option contracts under Exchange Rule 310(a). The Exchange can also impose additional margin for under‑hedged positions under Rule 1504(b).
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