Morgan Stanley, Charles Schwab, UBS and co. launch new exchnage to take on Wall Street

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A new low-budget exchange named the MEMX (Members Exchange) will be launched by a consortium of financial institution in order to compete with the NYSE and Nasdaq indices.

The venture is headlined by notable names such as, Morgan Stanley, Fidelity Investments, Citadel Securities LLC, Charles Schwab Corp., E*Trade Financial Corp, TD Ameritrade Holdings Corp, UBS and Virtu Financial.

The exchange would essentially be much easier to work with by implementing the latest technology and maintaining simple basic orders structures and lower pricing on market data and other fees such as transactions.

It is not unheard of the U.S. exchanges to charge large fees for data during stock trades, brokers have long complained about such things, even more so last year as the SEC stepped in and demanded the exchanges to justify the fees for public market data.

However, the WFE (World Federation of Exchanges) has defended the high fees as it stated, “The price at which information is licensed is accordingly a commercial matter for each individual consumer and exchange.”

“The WFE stands ready to assist any regulators who are concerned about the role and nature of market data.”

EU Banks had attempted the same approach by founding Turquoise, which had relative success, but it ended up being bought by the LSE,  the London Stock Exchange.


Source: Smart Trend Team


Source: Smart Trend Team