MIAX files rule change to add selective quote cancellation tool

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Ciaran Ryan

01.06.2026

MIAX files rule change to add selective quote cancellation tool — MIAX unveils quote purge tool

Miami International Securities Exchange is moving to refine how market participants can withdraw trading interest as options venues focus on tighter intraday risk controls. The proposed change adds an optional Selective Liquidity Auto Purge feature, with implementation targeted for the third quarter of 2026 if it proceeds.

Highlights

MIAX filed a proposed rule change with the SEC on May 19, 2026, to add the Selective Liquidity Auto Purge (SLAP) cancellation tool to Exchange Rule 519C.
The SLAP tool allows members to perform targeted mass cancellations of Standard quotes based on MPID, underlying instrument, and SLAP code, with usage remaining optional.
MIAX expects to implement SLAP in Q3 2026 and believes it will enhance market-makers' risk management and potentially increase liquidity and market quality.

Rule filing outlines new cancellation function

Securities and Exchange Commission notice states that MIAX filed the proposed rule change on May 19, 2026, to amend Exchange Rule 519C on mass cancellation of trading interest.

The exchange says the new Selective Liquidity Auto Purge, or SLAP, would let members carry out more granular mass cancellations of Standard quotes. At present, members can send a mass cancellation request through the MIAX Express Interface using the Mass Liquidity Cancel Request, Simple and Complex message.

Under the proposal, use of the SLAP feature is optional. A SLAP request would be sent to the system with the MPID, underlying instrument and SLAP code for the Standard quotes to be removed.

Market-making and risk management impact

To introduce the feature, MIAX proposes adding new paragraph (d) to Rule 519C. The exchange says the change is consistent with the Securities Exchange Act and supports fair and orderly markets by helping prevent fraudulent and manipulative practices and promoting equitable trading principles.

MIAX says the added functionality gives market makers another risk management tool and could encourage them to provide more liquidity on the exchange, which it says may improve market quality for participants. The exchange expects implementation in the third quarter of 2026 and says it will notify market participants through a Regulatory Circular at least 30 days before launch.

Our earlier article on CME Group’s move to 24/7 trading for its cryptocurrency futures and options highlighted how a major market venue is expanding round-the-clock access to digital-asset derivatives for institutional participants. We also noted that, despite the product update, CME shares remained under strong selling pressure and below key technical levels, underscoring how market structure changes don’t always translate into immediate price support.

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