MEMX reports slower sub-dollar equity activity as options volumes stay firm

Traders Union
All News
Financial Institutions
MEMX sub-dollar equity, options

Highlights

Sub-dollar stocks account for 12% of October equity CADV at MEMX, down from a 16% peak in June as retail engagement declines.
MEMX Options average daily contracts traded hit 2.8 million in October, the exchange's second-best month, with market share rising to 4.2%.
MX2 cut market maker add fees in SPY, QQQ, and IWM by 60% in November, aiming to boost displayed liquidity around national best bid and offer.

October trading trends and market structure rollout

As reported by MEMX, sub-dollar stocks account for 12% of October equity CADV, down from a 16% peak in June as retail risk appetite cools. October equity CADV comes in at 17.3 billion shares, up 2% from September and down 18% year over year.

MEMX says the share of equity CADV in sub-dollar stocks remains a useful gauge of retail sentiment because activity in those names comes mostly from individual investors. Over the past two years, a level near 15% has generally marked a risk-on backdrop, but since August 2025 the sub-dollar share has mostly run lower, with only brief spikes to 15% in April 2026 and 16% in June 2026. Over the past four months, sub-dollar activity ranges from 10% to 13% as retail participation softens.

MEMX Equities is also participating in industry 23x5 testing ahead of its targeted December 6 launch of a 9 p.m. to 4 a.m. ET overnight trading session, subject to SIP, DTCC and listing-market readiness. The company notes remaining tests on November 6 and November 20, as the broader market moves toward longer trading hours after SEC Trading and Markets Director Jamie Selway said on October 14 that markets will soon run 23x5 and likely shift to 24x7 not long after.

Separately, MEMX recently published its first amended SEC Rule 605 reports for August 2026, the first month under the new reporting requirements. The updated disclosures add execution quality statistics and extend coverage beyond market centers to large broker-dealers, single-dealer platforms and ATSs, though MEMX says comparisons across reporters require caution because order coverage differs widely by venue and order handling type.

Options activity supports exchange momentum

Options trading remains a brighter spot for MEMX despite softer equity volumes. MEMX Options average daily contracts traded reaches 2.8 million in October, the second-best month in its history, while market share rises to 4.2% of total options volume and 7.9% of regular electronic trading.

MX2, which launched on September 14, continues to gain traction and sets a daily record of 360,922 contracts traded on the last day of October. Its market share reaches 0.56% of total options volume and 1.07% of regular electronic trading on October 27.

In November, MX2 cuts add fees for market makers by 60% in SPY, QQQ and IWM, reducing the charge to $0.20 per contract from $0.50. MEMX says the change is intended to encourage more competitive quoting alongside customer orders, with the goal of increasing displayed size and time at the national best bid and offer.

Extended-hours trading in listed options, which begins on October 19, is still small but shows early concentration in a narrow set of products and time windows. A total of 604,931 contracts trade in the new sessions through October 30, equal to 0.17% of volume in the 29 covered securities, with more than 93% of that activity taking place in the 7:30 a.m. to 9:25 a.m. ET pre-open session. SPY, QQQ and IWM account for 74% of contracts, while NVDA and TSLA lead single-stock activity. MEMX expects extended-hours options volume to grow over time as more domestic and overseas brokers onboard.

Earlier, we reported that the S&P 500 hovered near 8,000 as elevated Treasury yields and oil above $105 a barrel tested sentiment.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.