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Wall Street big wigs plan new exchange to challenge NYSE, Nasdaq

Reuters 

(Reuters) - Morgan Stanley, Fidelity Investments, and a host of other financial companies have agreed to jointly launch a new low-cost bourse that will compete with the New York and

In a joint statement on Monday, the companies said the new exchange will look to increase competition, improve operational transparency, reduce fixed costs and simplify equity trading in the U.S.

The new venture will be called Members Exchange (or MEMX) and will be funded and controlled by nine institutions, including Lynch, Charles Schwab Corp, E*TRADE Financial Corp, TD Ameritrade Holdings Corp, and

The new exchange comes after years of headaches among brokers and traders with high fees charged by U.S. stock exchanges.

Members Exchange, which plans to offer a simple trading model with basic order types and the latest technology, will also represent the interests of its founders' collective client base, comprised of

The big three U.S. exchanges have faced criticism for surging fees for services like data feeds that brokers use to monitor movements in stock prices.

owns the New York Stock Exchange, is run by Inc and the other exchange is Cboe Global Markets Inc.

Shares of Intercontinental Exchange were down 2.6 percent and Nasdaq operator fell 2.8 percent.

is the only independent exchange not owned by the ICE and Nasdaq, and handles a little more than 2 percent of U.S. equities trading volume.

MEMX will file an application seeking approval to operate as a national securities exchange with the in early 2019, according to the statement.

(Reporting by in Bengaluru; Editing by James Emmanuel, Bernard Orr)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 07 2019. 20:14 IST
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