MIAX Options has announced their upcoming debut on a VIX lookalike, the SPIKES Index, Bloomberg reports. If the attempt proves successful, MIAX could break Cboe’s monopoly on the volatility market. According to Cboe’s recent numbers, a tough road lies ahead for MIAX—throughout the past three months, their competitor has passed 550,000 contracts daily.
Still, MIAX remains hopeful about their debut. “We are excited to see this process unfold as a new entrant in the market and to position SPIKES to meet its full potential as a robust economic engine over time," said Thomas P. Gallagher, Chairman and CEO of MIAX Options.
The company introduces new options as a low-cost alternative to Cboe contracts. “It’s been a monopoly—and Cboe did a fantastic job—but that’s why prices are high,” said Simon Ho, CEO of T3 Index, the financial indexing firm behind SPIKES. He added that five banks have expressed interest in the services from “almost day one.”