Wall Street plans to create a new exchange - a competitor of NYSE and NASDAQ

Small group in count, but not in size, including Morgan Stanley, Fidelity Investments and Citadel Securities, are planning to launch an all-new low-cost stock exchange to compete with existing NYSE and NASDAQ.

The idea of ​​creating the new project, which will be called the Members Exchange or MEMX, comes after years of nervousness and irritation among Wall Street brokers and traders for the current fees.

MEMX will be controlled by nine banks, brokerage houses and HFT companies to fund the project. This agreement between the participating countries will bring us back into the era when stock exchanges were owned by the members, usually these were the brokers themselves.

Investors of the MEMX project are also joined by Bank of America Merrill Lynch and UBS AG, HFT firm Virtu Financial and retail brokers - Charles Schwab, E * Trade Financial Corp and TD Ameritrade Holding Corp. Representatives of the New York-based investor group, MEMX, will be joining the SEC's bid to acquire Exchange status earlier this year. It may take at least 12 months or more until the SEC approves the project. This means that the stock exchange can only go up to 2020.

Despite the promising number of participants and supporters of the MEMX project, there is no guarantee that it will succeed. New exchanges usually have tremendous difficulty in attracting trading activity. But it is precisely the idea of ​​lower fees and costs that can attract much interest in the project. ICE, NASDAQ, and Cboe have met with strong criticism of the fees charged for services needed by brokers to track stock movements.

Източник: The Wall Street Journal

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