There is a new exchange in the works that has the backing of financial heavyweights Morgan Stanley, Fidelity Investments, and TD Ameritrade the companies said yesterday in a release – it will be called MEMX or Members Exchange. Also, showing support is the high-frequency firm Virtu Financial, and in comment by its CEO Mr Doug Cifu, he pointed out that this new exchange wanted better represent institutional and retail investors in the US market.
The planned launch of this new exchange is for several key reasons, but the standout in the discussion is that there is growing concern about the changes and their users over trading practices, rising rebates and other key points that have caused a lot of bad blood with some large members on the street. Other names backing the plan are Merrill Lynch and UBS as well as retail firms such as Charles Schwab and E*Trade. Currently, MEMX is assembling a management team and documents will likely be filed with the SEC or the Securities and Exchange Commission in the US early this year. Shares as competing exchanges were down with NYSE down 1.8 percent and CBOE Global Markets down 1.9 percent.