Miami International Holdings, Inc. earnings calls

Why options revenue fell and cost cuts

Q (Patrick Moley · Piper Sandler): He asked for a breakdown of the three causes of the RPC decline and which July fee changes stayed in place. He also asked what OpEx cuts were made and what levers remain for 2027.

A: Management said the ORF impact was about $0.006, the July fee changes accounted for about $0.008 or $0.009, and mix effects were about +$0.003. They said they have no planned fee changes for October or November and suggested a $0.10 range as a reset point. On OpEx, they cited lower marketing timing, some planned headcount increases, pulling in hardware CapEx early to mitigate costs, and will give full year guidance in early February.

"So I think that was probably about $0.008 or $0.009." — Lance Emmons (CFO)

Costs for new futures products and distribution

Q (Jeffrey Schmitt · William Blair): He asked how much MIAX is spending on new futures rollouts, especially the Bloomberg products, and when those costs will roll off. He also asked how quickly retail platforms will broaden distribution and what drives adoption.

A: Lance said transaction fees show an inverted capture rate (about $1.42 per contract) and that as more retail trades enter the product, incentives will fade and fees should move toward the $0.25 to $0.30 range. He said quoting incentives cost about $0.5 million to $1 million per quarter and marketing for product growth is a couple million dollars; those quoting incentives sit in OpEx and will fall as fees go positive. Shelly said NinjaTrader is live, a second firm finished testing and should go live in the next 30 days, two more firms are close, and they will run joint marketing and incentives with those platforms.

"In terms of quoting incentives, that's, I don't know, $0.5 million, maybe a little more per quarter, $0.5 million to $1 million a quarter to provide those quoting incentives." — Lance Emmons (CFO)

Pricing vs market share and tech edge

Q (Kenneth Worthington · JPMorgan): He asked why pricing fell more than expected without larger market share gains and whether the $0.10 RPC implies a certain market share level. He also asked if the technology advantage can keep driving market share.

A: Shelly said market share and pricing are usually negatively correlated but can vary month-to-month; the RPC change reflected fee moves and the quality and mix of market mechanisms and customer volume. Lance said the $0.10 level reflects the current mix and that market share gains come from factors beyond low fees, like the trading floor and complex orders. Management added that the technology advantage remains important for growth, especially when volatility rises and market makers need low latency and determinism.

"I think the $0.10 we're seeing is kind of reflective of the current mix of business that we've had." — Lance Emmons (CFO)

Tech details that win market makers

Q (Douglas Schafer): He asked what specific technology features keep market makers on MIAX and what new tech or protections are coming.

A: Management said latency and determinism help market makers post deeper, tighter markets, but there are many subtleties like determinism for retail order taking and risk protections where they continue to innovate. They said more R&D and some rollouts are planned for 2027, and the firm emphasizes uptime, latency, and determinism to let market makers be more aggressive. Shelly added that volatility has been stable in the mid-teens and that higher volatility amplifies the value of their technology and tends to push volume their way.

"While they may take a more defensive posture on another exchange, they can be much more aggressive here because, as we've talked to you guys, we still have the ability to have 36 microseconds of latency at the 99.9 percentile." — Thomas Gallagher (CEO·CHAIR)

Competition and perpetual futures plans

Q (Christopher Brendler · Rosenblatt): He asked whether the competitive environment has materially changed and whether MIAX plans to invest in perpetual futures or will wait.

A: Shelly said new exchange entrants generally lack MIAX's technology and functionality and tend to compete on the fringes, so she does not see a big impact on MIAX's market share. She said future growth will come from added electronic functionality and the trading floor. Tom said for perps they need three things: clear customer demand, a clear regulatory pathway from the SEC or CFTC, and economics that justify the investment; they have the licenses and relationships and will listen to customers on priority.

"We don't view that as usually competitive with us." — Shelly Brown (CEO)

Readiness for new products like perps

Q (Douglas Schafer): He asked how MIAX's systems and cost base position them to add new products like perps and whether large new tech investments are needed.

A: Douglas said MIAX owns its clearing house and trading platform and uses a common technology stack across asset classes, which helps control expenses and avoid large re-architectures for new products. He said most changes are functional and evolutionary, so it's a matter of whether a product rises in priority versus other projects. Tom said perps could bring offshore volumes into U.S. markets, and Shelly noted perps are early stage and notionals can sound large because Bitcoin is about $80,000 a contract.