The Members Exchange received approval from the US SEC to operate as a national securities exchange

7 May, 2020 23:13
source: Singularity Financial

Singularity Financial Hong Kong May 7, 2020 – By David Lee

The US SEC (Securities and Exchange Commission) has granted approval for a consortium of Wall Street firms to launch a new stock exchange, the MEMX (Members Exchange) on Tuesday.

The founding members include some of the largest financial institutions operating in the US, including Bank of America, UBS, Virtu Financial, Morgan Stanley, Fidelity, Citadel Securities, Charles Schwab, E-Trade Financial and TD Ameritrade.

According to Reuters, the new bourse expects to compete with the NYSE and Nasdaq with lower fees, but has delayed its planned 24 July launch due to the Covid-19 crisis and to allow more time for companies to connect to and test its systems.

The new exchange is now expected to go live during Q3 2020. MEMX’s approval comes less than 16 months after the nine founding firms announced their intentions to launch the exchange in January 2019 with a $70 million investment.

Jonathan Kellner, CEO of Members Exchange, said, “We are excited to earn SEC approval in this challenging environment and appreciate the Commission’s thoughtful and timely review of our application. This achievement is the result of our team’s great diligence and represents a major step towards launching an exchange designed for all investors.”

There are currently 13 stock exchanges already operating in the US, but brokers and traders have long complained about the high fees charged for market data and connectivity. MEMX says it will offer a less expensive model; fewer, less complex order types; and a basic market data feed.

Besides MEMX, another Silicon Valley-based futures exchange – Long Term Stock Exchange – has received approval to launch, and another – MIAX Pearl – is said to be preparing to offer stock trading on its existing options trading platform.