Major Wall Street players plan exchange to challenge NYSE, Nasdaq
JANUARY 7, 2019 / 9:01 AM
NEW YORK (Reuters) - Morgan Stanley, Fidelity Investments, Citadel Securities LLC and a host of other financial companies plan to launch a low-cost bourse that will compete with the New York Stock Exchange and Nasdaq.
The venture will be called Members Exchange, or MEMX, and will be funded and controlled by nine institutions: Bank of America Merrill Lynch, Charles Schwab Corp, E*TRADE Financial Corp, TD Ameritrade Holdings Corp, UBS, Virtu Financial, Morgan Stanley, Fidelity and Citadel.
MEMX, which plans to offer a simple trading model with basic order types and the latest technology, will also represent the interests of its founders’ collective client base of retail and institutional investors.
It will offer “lower pricing on market data, and connectivity and transaction fees,” it said.
The big three U.S. exchanges have faced criticism for surging fees for services like data feeds that brokers use to monitor movements in stock prices.
Intercontinental Exchange Inc (ICE) owns the New York Stock Exchange, Nasdaq is run by Nasdaq Inc and the other exchange is Cboe.
Shares of ICE were down 2.6 percent and those of Nasdaq Inc were 2.8 percent lower.
In early 2019 MEMX will file an application with the SEC seeking approval to operate as a national securities exchange, according to the statement.
The World Federation of Exchanges (WFE) hit back against criticism of bourses on Monday, saying price feeds would not exist but for the role they play.
"חילופי חברים" = 44 (Hebrew Reduction)
"חילופי חברים" = 116 (Hebrew Ordinal)
"חילופי חברים" = 404 (Hebrew Gematria)
"חילופי חברים" = 964 (Hebrew Soffits)
"members exchange" = 611 (Jewish)
"assassination" = 611 (Jewish)
"Tribulation" = 611 (Jewish)
"Bilderberg Group" = 611 (Jewish)
"Brotherhood of Death" = 611 (Jewish)
"Human Blood Sacrifice" = 611 (Jewish)
"MEMX" = 365 (Jewish)
"MEMX" = 19 (Full Reduction)