Miami-Based MIAX Exchange Group Reaches Record 16.7% Options Market Share as Trading Volume Surges 43%

MIAX's Aggressive Exchange Empire Threatens Wall Street's Old Guard

Miami Upstart Seizes Record 16.7% of U.S. Options Market as Trading Technology Arms Race Intensifies

MIAX Exchange Group reported a staggering 42.9% year-over-year surge in June trading volume, capturing a record 16.7% market share of U.S. options trading in Q2 2025—a milestone that has sent tremors through the financial establishment.

"We're no longer just watching a scrappy upstart gaining ground—we're witnessing a structural power shift in U.S. market infrastructure," notes a veteran market structure analyst who has followed exchanges for two decades. "MIAX has methodically transformed from niche disruptor to strategic threat."

The Miami-based exchange group processed 164.4 million options contracts in June alone, with year-to-date volume surpassing 1.1 billion contracts. Most remarkably, MIAX Sapphire—launched just 11 months ago in August 2024—already commands 3.2% market share with 32.4 million contracts traded last month.

The Micromillisecond Advantage: Technology Driving Market Capture

MIAX's explosive growth outpaces the broader industry's healthy 20.8% year-over-year expansion in options trading. This differential reveals a critical competitive edge: technology that shaves crucial microseconds from trading times.

The exchange group's systems deliver sub-20 microsecond round-trip times from order entry to clearing—a speed advantage that attracts high-frequency trading firms whose algorithms live and die by nanosecond margins. This technical superiority has particularly drawn flow away from slower legacy venues operated by NYSE and Nasdaq.

"Their engineering team has built what amounts to the Formula 1 car of exchange architecture," says one industry technology consultant who requested anonymity due to client relationships with multiple exchanges. "The ultra-low latency and deterministic performance creates a virtuous cycle—better executions attract more liquidity, which in turn brings more participants."

The Multi-Venue Chess Game: Cannibalization as Strategy

Perhaps counterintuitively, MIAX operates four distinct options venues—MIAX Options, Pearl, Emerald, and Sapphire—that sometimes compete against each other. This deliberate fragmentation strategy has yielded mixed results: while MIAX Options grew 42.7% year-over-year to 73.1 million contracts and Emerald grew 8.3%, Pearl Options saw significant declines, with volume dropping 23.4% and market share falling 36.5%.

Market observers note this internal cannibalization is likely by design. MIAX's proprietary order protection router allows flow to cross between its venues without additional fees, raising the entire group's execution quality while strategically deploying Pearl as a low-fee venue to attract price-sensitive traders.

The numbers tell a compelling story: while MIAX's individual venues rise and fall, the group's combined market share continues its relentless climb, suggesting the approach is working.

Beyond Options: Building a Multi-Asset Powerhouse

While options dominate MIAX's business, the group is aggressively diversifying. MIAX Pearl Equities traded 3.7 billion shares in June, up 23.6% year-over-year, though market share remains modest at 1.0%. More promising is MIAX Futures, which saw volume surge 36.0% year-over-year to 470,612 contracts.

The imminent July 2025 launch of the Onyx futures platform and planned introduction of Bloomberg 500 Index futures in the second half of 2025 signal a direct challenge to Cboe's lucrative SPX options monopoly. Simultaneously, MIAX has made a binding offer to acquire 70% of The International Stock Exchange in the UK Channel Islands, potentially creating a MiFID-light listing venue with cross-Atlantic potential.

"They're not just trying to be the best options exchange—they're building a comprehensive market infrastructure company with multiple revenue streams," observes a senior exchange analyst at a major investment bank.

David vs. Goliaths: The Competitive Battlefield

MIAX's gains come primarily at the expense of Nasdaq PHLX and NYSE Amex/Arca rather than market leader Cboe Global Markets, which continues to dominate with its proprietary SPX options products. While Cboe's multiply-listed options flow grew just 7.6% year-over-year compared to MIAX's 42.9%, Cboe's high-margin exclusive products like SPX 0-DTE options (with average daily volume of 2.2 million contracts) provide significant insulation.

Meanwhile, newer entrants like MEMX have reached approximately 3.6% market share, while IEX's June 2025 SEC filing for an asymmetric speed bump could potentially disrupt the entire latency-driven competitive landscape if approved.

Storm Clouds on the Horizon

Despite MIAX's momentum, significant challenges loom. The SEC's planned implementation of half-penny pricing rules in November 2025 threatens to compress transaction fees across the industry. Additionally, potential regulatory changes to best-execution requirements could standardize auction protocols across venues, potentially neutralizing MIAX's technological edge.

"The risk is that their technological advantage gets regulated away," cautions a regulatory affairs specialist at a major trading firm. "If the SEC mandates uniform auction mechanisms or imposes constraints on speed advantages, MIAX's growth trajectory could flatten overnight."

Investment Implications: What Lies Ahead

For investors tracking this space, several potential scenarios emerge. Market experts suggest MIAX could reach 18-20% U.S. options market share by the end of 2026 barring macroeconomic disruptions. Industry sources indicate MIAX's confidential S-1 filing from 2022 may resurface once fiscal year 2025 results confirm revenue exceeding $450 million and adjusted EBITDA margins above 50%.

Using public exchange valuation benchmarks—Cboe trades at 25× FY-25E P/E with +27% annual return, Nasdaq at 24× with +19%, and ICE at 28× with +21%—analysts suggest a potential MIAX valuation range of $6-8 billion, implying $33-55 per share if an IPO were priced today.

Key catalysts to monitor include the H2-2025 Bloomberg 500 futures launch, November 2025 SEC half-penny rule implementation, potential Q1-2026 S-1 public filing, and the planned 2026 opening of Sapphire's open-outcry trading floor—a hybrid model that could attract complex order flow currently executed at Cboe and NYSE.

For professional investors, three potential approaches emerge: preparing for a possible MIAX IPO that would represent a high-growth pure-play exchange; considering a relative trade that goes long MIAX through private secondary markets while shorting Nasdaq's options segment exposure; or for institutions dependent on options rebates, engaging with MIAX early to influence fee schedules before regulatory changes reset market economics.

Disclaimer: This analysis is based on current market data and should not be considered investment advice. Past performance does not guarantee future results. Market participants should conduct their own research and consult with financial advisors before making investment decisions.