MIAX Options and T3 Index to Launch SPIKES Volatility Index; Proprietary Products to Follow on MIAX Exchanges PRESS RELEASE PR Newswire Apr. 13, 2018, 09:35 AM PRINCETON, N.J., April 13, 2018 /PRNewswire/ -- MIAX Options® and T3 Index today announced that the SPIKES™ index (Ticker: SPIKE) will be launched on MIAX Options in April 2018. SPIKES measures the expected 30-day volatility in the SPDR S&P 500 ETF (SPY), one of the most actively traded securities in the world. Additionally, SPIKES is equipped with proprietary design features such as "price-dragging" to help stabilize the index during times of market stress. This launch is the first of many joint initiatives between the two companies, following the establishment of an exciting new partnership between T3 Index and MIAX Options' parent holding company, Miami International Holdings, Inc. (MIH). SPIKES was created by T3 Index, a research-driven financial indexing firm that specializes in developing innovative volatility and option-related indices across asset classes. Developed in response to the market's demand for a more rigorous and dependable volatility gauge, the SPIKES index is specifically designed to be highly resilient and more responsive in today's highly automated markets. As part of the agreement with T3 Index, MIH has obtained an exclusive, worldwide license to develop exchange-traded products based on T3 Index's SPIKES and other indices for all of MIH's exchanges, and a minority ownership interest in T3 Index. MIAX Options intends to launch cash settled options on SPIKES in the second half of 2018. All products remain subject to SEC approval. Thomas P. Gallagher, Chairman and CEO of MIAX Options, said, "After launching the SPIKES index we will focus on listing several proprietary SPIKES options products that could truly be game changers for our customers and the U.S. options industry in general. By marrying our best-in-class trading technology with T3 Index's IP and expertise in the volatility space, we envision MIAX Options becoming a volatility product powerhouse. This is a great opportunity for both parties, and we look forward to a mutually beneficial relationship with T3 Index for many years to come." "T3 Index's partnership with MIH is an excellent way to further our mission to develop tools through volatility product innovation that will enable investors greater flexibility in both generating returns and protecting them," said Simon Ho, Executive Director of T3 Index. "We are thrilled that MIAX Options is launching the SPIKES index and we are working together to offer tradeable products which will give investors more accessible, cost effective ways to invest in volatility. We believe the enhanced design of SPIKES vastly improves index stability and better reflects the nature of today's predominantly electronic options market. We view this as a huge advantage over the slower, manually traded floor-based S&P 500 index options, and are confident that the launch of these SPIKES options products will be viewed by the trading community as an exceptional alternative to the current volatility product offerings of other exchanges." "MIAX Options is excited for the opportunity to launch the SPIKES index and eager to introduce SPIKES-based options products given its unique tracking of SPY" said Joseph W. Ferraro III, Senior Vice President, Deputy General Counsel of MIAX Options. "SPY is the largest exchange-traded fund in the world, and its popularity creates a highly liquid market for the associated options, accounting for approximately half of the notional value traded per day across all U.S. equity options exchanges." Added John Smollen, Executive Vice President – Head of Exchange Traded Products and Strategic Relations at MIAX Options, "T3 Index is one of several opportunities we have recently pursued with third parties as part of our commitment to bringing innovative and unique exchange-traded products to our customers. In addition to the SPIKES options products, we are equally enthusiastic about the anticipated launch of other third party-based proprietary products and expect to formally announce them in the coming months."
Would be interested to know what is this "price dragging" mechanism that's supposedly built in to stabilize the index during market downturn and also how the SPIKE index is calculated, using which instruments... It is interesting to note that T3 has already partnered with BATS to launch an index to measure 30-day volatility of SPY called SPYIX with "price dragging" mechanism and everything back in March of 2016 according . https://www.businesswire.com/news/home/20160308005918/en/Bats-Global-Markets-T3-Index-Launch-SPYIX So is this SPIKE the same as SPYIX just it didn't materialize with BATS and now they are trying again or is this a replica of SPYIX?