Members Exchange Expects to Launch in July
MEMX, a new independent stock exchange founded by large brokers including Charles Schwab and E*Trade, says it will launch in July if it obtains regulatory approval from the SEC, which it expects in the second quarter. According to Reuters, MEMX’s potential launch has put its potential competitors on notice, and the stocks of Nasdaq and ICE fell on the initial announcement. Among major institutions backing MEMX are Bank of America Corp, Virtu Financial, Morgan Stanley, Fidelity and Citadel Securities.According to the Wall Street Journal, MEMX was created after years of frustration among brokers and traders with the fees charged by the big U.S. exchange groups, particularly for market-data feeds that many financial firms regard as essential for their business. MEMX’s backers hope their lower fees will pressure the larger exchanges to keep their own fees low.