MIAX Proposes Alternative Rebates for Certain Complex Options Orders

Miami International Securities Exchange, or MIAX, has filed a proposed change to its Priority Customer Rebate Program for certain complex-options transactions. The SEC published the notice on September 16; MIAX filed the proposal on August 31 and designated it effective on filing.

The proposal would add alternative rebates for qualifying non-paired complex orders. Instead of relying only on the program’s existing volume tiers, the alternative treatment would use a member’s monthly non-paired complex-order volume as a percentage of that member’s total Priority Customer volume counted in the rebate program.

MIAX defines a complex order as an order involving two or more different options in the same underlying, entered together as part of a strategy; the definition can also include certain stock-option orders. The filing says rebate credits are paid per contract per leg to the member that submits electronically executed Priority Customer orders, subject to the program’s conditions and exclusions. A Priority Customer, under MIAX’s rules, is not a broker-dealer and does not exceed the exchange’s average daily listed-options order threshold.

Why it matters

Exchange rebates generally accrue to members, market makers or broker-routing firms rather than appearing as a direct credit in a retail trader’s account. Still, changes to complex-order economics can influence how brokers and liquidity providers route multi-leg options flow, particularly for strategies such as spreads. Execution quality, displayed price and total fees remain more important to an individual trader than a venue rebate alone.

What to watch next

The SEC notice invites public comments. Watch MIAX fee-schedule updates and broker disclosures for the effective operating details and whether routing practices change for eligible complex orders.