MIAX Proposes Options on Commodity Trusts to Spur Retail, Crypto Trading

Miami International Holdings, Inc. (MIAX) Proposed Rule Change and Market Implications

Miami International Holdings, Inc. (MIAX) has submitted a proposed rule change to amend its Exchange Rule 402, which sets criteria for underlying securities to list and trade options on commodity-based trust shares. The update, filed with the Securities and Exchange Commission (SEC), is part of the firm's broader strategy to expand its product offerings and market presence. The firm, which operates multiple exchanges including MIAX Pearl, is seeking approval to allow the trading of options linked to these trust shares, a move that could open new avenues for investors in commodities and crypto-linked assets. The proposal aligns with MIAX's growing focus on technology and innovation in financial markets according to recent reports.

MIAX recently reported strong financial performance, including a 57% year-over-year increase in revenue for Q3 2025 and a 157% rise in adjusted EBITDA to $48 million. The options segment alone contributed $94.5 million in revenue, reflecting robust trading activity and investor demand for derivatives. The company has also reduced its debt significantly, now standing at just $6.5 million, while maintaining a substantial $401 million cash balance. These financial indicators underline MIAX's strong capital position and operational efficiency, which the firm attributes to strategic initiatives such as the launch of event-based contracts and zero daily expiration options in the coming year.

MIAX's CEO, Thomas Gallagher, has emphasized the importance of technological readiness to handle peak demand, especially as the exchange continues to introduce new products and expand its retail market presence. This includes the planned launch of Bloomberg 500 Index futures in Q1 2026, which could attract a broader investor base. . The proposed rule change for commodity-based trust shares is another step in this direction, enabling MIAX to cater to evolving investor needs and further solidify its position in the options and commodities markets.

Implications for the Market and Investors

The proposed rule change could have several implications for the broader market and individual investors. By allowing options on commodity-based trust shares, MIAX is likely to attract a new segment of investors who seek exposure to commodities without directly holding the underlying assets. This could increase liquidity and trading volume on the platform, enhancing market efficiency and potentially broadening the appeal of MIAX's offerings. For institutional and retail investors alike, the move provides more flexibility in managing risk and diversifying portfolios across different asset classes.

The expansion of options on commodity-based assets also aligns with the growing interest in exchange-traded products (ETPs) and crypto-linked instruments. For example, recent developments in the crypto space, such as VanEck's third amendment for a spot Avalanche ETF, highlight a broader trend of traditional financial platforms integrating digital assets into their product suites. MIAX's move could signal a similar strategy, leveraging its existing infrastructure to offer innovative financial instruments that align with investor demand.

Regulatory and Strategic Context

From a regulatory standpoint, the proposed rule change will need to comply with the SEC's evolving framework for crypto and commodity-based products. The SEC's recent guidance on pairs trading involving crypto assets and securities has provided clarity for exchanges seeking to expand their product offerings. This includes addressing compliance with Regulation ATS and ensuring transparency in settlement and trading processes. The Staff at the SEC has emphasized that such activities must adhere to existing legal standards while avoiding unnecessary regulatory burdens.

MIAX's move also fits into a broader strategic context. The company recently signed a memorandum of understanding with Boursa Kuwait, a step aimed at enhancing cross-border cooperation and expanding its international reach. This aligns with the firm's goal of becoming a leading global market infrastructure provider across asset classes and geographies. The proposed rule change is another piece of this strategy, reinforcing MIAX's commitment to innovation and regulatory compliance.

What This Means for Investors

For investors, the proposed rule change introduces new opportunities to engage with commodity-based assets through options, potentially offering more cost-effective and flexible ways to hedge or speculate on price movements. The increased product diversity could attract a wider array of market participants, including those who previously found commodities or crypto assets inaccessible or too complex. This is particularly relevant in light of growing demand for alternative investments, especially as crypto-linked ETPs continue to gain traction.

Investors will also need to consider the risks associated with trading options on commodity-based trust shares, including market volatility and the potential for leverage to amplify losses. As with any financial instrument, due diligence is essential. The firm's strong balance sheet and strategic initiatives suggest a stable environment for investors, but market conditions and regulatory developments could impact the success of the proposed rule change. As MIAX moves forward with its plans, market participants will be watching closely for any developments, including the SEC's approval timeline and potential market reactions.