A group of banks, market makers and retail brokers said on Monday they’re teaming up to launch an equities exchange.
The founding members said they’re frustrated with the consolidation of power in the equities markets between three large exchange operators: Intercontinental Exchange, Nasdaq and Cboe Global Markets.
The Member Exchange, or MEMX, will offer reduced fees for trading, connectivity and market data.
A group of big Wall Street firms including Fidelity, Morgan Stanley and UBS announced a plan on Monday to launch a new equities exchange that will take on the New York Stock Exchange and Nasdaq.
The Members Exchange, or MEMX, will be owned entirely by its founding members and has plans to file an application with the Securities and Exchange Commission in early 2019 to try and gain approval as the 14th stock exchange in the US.
MEMX founding members include a wide range of market participants. Banks (Bank of America Merrill Lynch, Morgan Stanley and UBS), market makers (Citadel Securities and Virtu Financial) and retail brokers (Charles Schwab, E*TRADE and Fidelity Investments) are all represented in the group.
The creation of the exchange came after frustration from big brokers and traders over the consolidation of power in the equities market. All but one of the 13 national securities exchanges are owned and operated by one of the three major players in the space: the Intercontinental Exchange, Nasdaq, and Cboe Global Markets.
“The level of frustration from us, from our clients, has never been greater,” Vlad Khandros, global head of market structure and liquidity strategy at UBS, told Business Insider in an interview. “It just seemed like this was a time to further represent the institutional clients, the retail clients, from a policy standpoint and from a pricing standpoint so that there is better alignment and so that execution costs …read more
Source:: Business Insider