Major Wall Street players plan new exchange to challenge NYSE, Nasdaq
MEMX will offer a low-cost, transparent alternative to the established US stock exchanges which have long been criticised for their excessive fees
New York — Morgan Stanley, Fidelity Investments, Citadel Securities and a host of other financial companies have agreed to jointly launch a new low-cost bourse that will compete with the New York Stock Exchange (NYSE) and Nasdaq. In a joint statement on Monday, the companies said the new exchange would look to increase competition, improve operational transparency, reduce fixed costs and simplify equity trading in the US.
The venture will be called Members Exchange, or MEMX, and will be funded and controlled by nine institutions, including Bank of America Merrill Lynch, Charles Schwab, E*TRADE Financial, TD Ameritrade Holdings, UBS and Virtu Financial. The new exchange comes after years of complaints from brokers and traders over what they see as too high fees charged by US stock exchanges for data on stock trades. Last year, the US Securities and Exchange Commission (SEC) asked stock exchanges to do a better job justifying their fees for public market data. It also repealed t...
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