MIAX Pushes for Trading Tiny Micro Stock Index Options
Published Date: 7/8/2025
Notice
Summary
Miami International Securities Exchange (MIAX) wants to start listing and trading options on tiny, focused stock groups called micro narrow-based indexes. This change means investors can trade smaller, more precise index options with new rules on limits and maintenance. The SEC is reviewing this proposal, and if approved, it could open fresh trading opportunities soon without big cost changes.
Analyzed Economic Effects
6 provisions identified: 6 benefits, 0 costs, 0 mixed.
Numeric Listing Thresholds for Index Components
To qualify as a micro narrow-based index, an index must meet specific numeric tests such as having nine or fewer component securities or meeting component-weight tests, each component having at least $75,000,000 market capitalization (with certain lowest-weighted exceptions at $50,000,000), and six-month average daily trading volume thresholds (e.g., at least 45,500 shares per component, with some lowest-weighted exceptions at 22,750 shares).
Position and Exercise Limits Adopted
MIAX proposes position limits for micro narrow-based index options by incorporating applicable Cboe rules and sets exercise limits equal to the position limits for the nearest expiration. It also states that ten reduced-value contracts equal one full-value contract for aggregation.
MIAX to List Micro Narrow Index Options
MIAX proposes rules to allow the Exchange to list and trade options on "micro narrow-based" indexes. The change was filed June 25, 2025 and would add a new classification and related rules (definitions, listing, maintenance, position and exercise limits) to MIAX's index options rulebook.
Faster Price Reporting and A.M. Settlement
The proposed rules require the current underlying index value to be reported at least once every 15 seconds while the index options trade, and cash-settled index options are designated as A.M.-settled. These steps are intended to increase transparency and reduce settlement-related market impact.
MIAX May List Without Separate SEC Filing
MIAX proposes amending Rule 1802(a) to add a cross-reference so that classes of options on micro narrow-based indexes may be traded pursuant to Rule 19b-4(e) of the Exchange Act without a separate Section 19(b) proposed rule change if the initial listing standards in Rule 1802(f) are met.
Surveillance and Intermarket Coordination
MIAX represents it will apply real-time and post-trade surveillance to micro narrow-based index options and will coordinate with the Intermarket Surveillance Group (ISG) and FINRA (via a 17d-2 plan) to obtain market information from other markets and affiliates for monitoring and enforcement.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-20466, Adviser and Regulated Fund Custody Rules; Crypto Custody Rules
The SEC is updating rules for how investment advisers and funds handle crypto assets, making sure they keep these digital investments safe and properly reported. These changes affect advisers, funds, and anyone managing crypto securities, aiming to modernize rules and improve transparency. Comments on the proposal are open until December 7, 2026, so get ready to weigh in!
2026-19260, Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4
The SEC wants to stop its federal rule that controls how shareholders can make proposals at company meetings, letting state laws and company rules take over instead. They’re also changing rules so companies can sometimes vote on proposals not in their official materials—but shareholders can opt out if they want. This affects investors and companies, with comments open until November 20, 2026, and could shake up how shareholder voices are heard and counted.
2026-18424, Political Contributions by Certain Investment Advisers
The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing to rescind the political contribution rule under the Investment Advisers Act of 1940 (the "Advisers Act"), which prohibits investment advisers from providing investment advisory services for compensation to a government client for two years after an adviser or any covered associate of the adviser makes a contribution to certain categories of elected officials or candidates, among other prohibitions. In the more than fifteen years since the rule was adopted, implementation challenges associated with the political contribution rule have resulted in a range of significant unintended consequences, including compliance practices among some investment advisers that may have had the effect of restricting all political contributions by the investment advisers and their employees. Market participants also have stated that the political contribution rule is burdensome, complex, and both lacks clarity and creates a de facto strict liability standard. The Commission is of the view that other existing requirements of the Advisers Act and its associated rules, including prohibitions on fraud, fiduciary duty requirements, the compliance rule, and the code of ethics rule (defined below), are likely sufficient to address pay-to-play practices while allowing an adviser the flexibility to implement an approach that is more appropriately tailored to its particular risks, rendering the political contribution rule unnecessary. The Commission also is proposing to amend the rule under the Advisers Act pertaining to books and records consistent with the proposed rescission.
2026-18190, Transfer Agent Rules
The U.S. Securities and Exchange Commission ("SEC" or "Commission") is proposing to adopt new rules, amend existing rules, amend the existing form for registration with the Commission as a transfer agent (Form TA-1) and the existing form for reporting activities of transfer agents (Form TA-2), and rescind an existing rule governing registered transfer agents. The proposals are designed to modernize the rules governing registered transfer agents.
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
Previous / Next Documents
Previous: 2025-12635, Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend and Restate the Exchange's Second Amended and Restated Limited Liability Company Agreement as the Third Amended and Restated Limited Liability Company Agreement
MEMX LLC is updating its company agreement to a new version called the Third Amended LLC Agreement. This change affects MEMX members and partners by clarifying rules and improving how the exchange operates. The update took effect immediately after filing on June 23, 2025, with no expected costs or fees for users.
Next: 2025-12637, Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Legal Processes
The USPTO is asking for your thoughts on continuing to collect info about legal processes, like subpoenas and court orders. This helps them keep things running smoothly and follow the rules. You’ve got 60 days to share your comments before they ask the big budget office for approval—no extra costs or big changes right now!