NEW YORK, Feb 10 (Reuters) - MIAX Pearl, one of three options exchanges run by Miami International Holdings Inc, said on Monday it plans to launch stock trading in September, adding to a growing list of firms looking to take market share from incumbents like the New York Stock Exchange.
MIAX said in a statement its plan to begin trading shares was still subject to approval by the U.S. Securities and Exchange Commission, and provided a link to a filing it made with the agency on Thursday.
“The entry of an innovative, cost competitive market such as Pearl Equities will promote competition, spurring existing exchanges to improve their own executions systems and reduce trading costs,” MIAX said in the filing.
There are currently 13 U.S. stock exchanges, including five run by NYSE-owner Intercontinental Exchange Inc, four owned by Cboe Global Markets Inc, and three by Nasdaq Inc. IEX Group runs the only independent U.S. stock exchange.
There are also two other exchanges eying 2020 launches: The Long Term Stock Exchange (LTSE), a Silicon Valley-based startup aimed at promoting long-term corporate growth ahead of short-term profits; and the Members Exchange (MEMX), a low-cost bourse backed by a group of large financial firms. The LTSE was granted regulatory approval in May, while MEMX, and now MIAX, await SEC decisions on their plans.
The proliferation of exchanges has caused some brokers to complain that the new bourses add little to the market, while increasing complexity, and adding to connectivity and market data costs.
Princeton New Jersey-based MIAX has offices in Miami and has said it aims to eventually list companies from Latin America on its stock exchange. In the meantime, the company said it will compete on price, a strategy that has helped it gain a more than 10% market share in equity options across its three exchanges.
In September, Thomas Gallagher, the chief executive officer of MIAX’s parent company, said Pearl Equities, would start out 40% cheaper than the incumbent exchanges on execution fees.
“When you make a movie that does well, you do it again and you do it again and you do it again,” he said. (Reporting by John McCrank; Editing by Tom Brown)
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