- Members Exchange submitted an application with the SEC to become the nation’s 15 th stock exchange.
- The brand-new venture is backed by major monetary gamers including Morgan Stanley and UBS, and intends to contend with the New York Stock Exchange and Nasdaq by cutting fees for traders.
- MEMX is considering a mid-2020 launch, and could provide early traders refunds to kick-start activity on the exchange.
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A brand-new task backed by significant monetary sector players used for regulatory approval to take on tradition stock exchanges including the New York Stock Exchange and Nasdaq
The Securities and Exchange Commission released Members Exchange’s application Thursday. The venture, likewise referred to as MEMX, was revealed in January and aims to slash the lofty connectivity and information costs connected with significant exchanges.
MEMX could launch as early as mid-2020 and end up being the country’s 15 th stock exchange if it wins approval from the SEC.
The exchange’s investors include:
- Morgan Stanley
- Bank of America
- Citadel Securities
- Virtu Financial
- Charles Schwab
- E * Trade
- TD Ameritrade
The nine investing companies would each own part of the exchange, wandering off from popular exchanges’ for-profit models. MEMX’s name calls back to stock market of the past, non-profit organizations owned by investing “members.”
The venture raised $70 million in its very first financing round, the Wall Street Journal reported in January
The new exchange could use traders refunds to kick-start activity on its platform and entice others to join, according to WSJ. Yet lower charges and trading rebates don’t guarantee the venture will grow popular among investors in the slow-moving exchange landscape.
The application filing shows up weeks after major brokerage firms consisting of Fidelity, E * Trade, and TD Ameritrade slashed commission fees for traders A lower-fee exchange might help the firms keep their margins without their previous levels of fee income.
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