MEMX is due to launch a second options exchange in the second quarter of 2026 after its first options venue reached record monthly market share this year. 

MEMX Options launched in September 2023 with 22 firms participating in the first three days. Two years later in September 2025, MEMX Options had a new volume record of 2.15 million average daily contracts with a 3.9% market share. 

In July this year MEMX Options’ monthly market share reached new highs of 4.1% of total market share and 7.6% of regular electronic market share. The firm said that its market share was 11.1% in non-penny options and its quote performance was ranked first out of 18 exchanges.

Geralyn Endo, head of options business development at MEMX, told Markets Media: “There are firms that have had a better experience in terms of fill rates or interactions on MEMX Options than on other price/time platforms which has contributed to our rapid growth.”

In March this year the firm received regulatory approval for its second exchange medallion, MX2. On 1 October 2025 MEMX said in a statement that it has received regulatory approval from the SEC to trade listed options under its MX2 exchange license and that it has established rules governing trading for both the US Options price/time and pro-rata exchange models.

Jonathan Kellner, chief executive of MEMX, said in a statement: “As investor interest and trading strategies continue to evolve, the addition of a customer priority, pro-rata model reflects our commitment to delivering flexible, innovative solutions that align with the diverse needs of today’s market.”

Endo said it has been an advantage to have proven technology for its second options exchange, which is familiar to clients. 

“That familiarity is a big thing for  our customers,” she added.

MEMX Options uses a price time-model, which means that orders are executed on a first in / first out basis after determining the best price, which encourages liquidity provision and tighter spreads. In comparison, MX2 will use customer priority, pro-rata allocation model which means that larger orders receive preference for execution, which encourages liquidity providers to put more size on the order book. 

MX2 will allow the firm to expand into the significant pro-rata market and attract new users whose business is more geared towards this model. The price-time model gives an advantage to firms who invest in speed, but this is less important in the customer priority, pro-rata model, which encourages deeper liquidity. 

Endo said: “If you don’t have a customer priority, pro-rata exchange, then you are not appealing to half the market.”

There are already a number of existing pro-rata options exchanges but Endo argued that the new exchange will also include a unique active risk control feature that has been available on MEMX Options. The risk control feature aims to improve quote performance by helping market makers better manage risk using internal metrics, especially when markets are volatile.

“There is a more dynamic conversation between the routing firm and the  exchange,” said Endo. “The trader can track, manage and adjust their risk in a near real-time and in a more granular way as our parameters are more sensitive.”

Even within the customer priority, pro-rata allocation model, there are many nuances such as whether or not there are lead market makers, according to Endo. 

“There are a lot of levers you can pull to make you more unique and we are actively discussing those types of programs with clients,” she added. “In addition, different fee models can be overlaid on the allocation models, and the many different permutations designed to enhance customer experiences are why there are nearly 20 U.S options exchanges.”

Endo also argued that MEMX has an advantage as the firm was founded by a group of retail brokers, financial services firms, banks and global market makers, and the members own the exchanges and can influence the direction of the business. When the first options exchange was launched, members were excited by the value proposition and having a voice in the technology, regulatory and market structure discussions. 

“Market participants appreciate knowing they are working with a model that represents their needs,” she added.