Members Exchange

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Members Exchange
Founded 2019
Headquarters New York
Products stock exchange

Members Exchange (MEMX) is a national securities exchange that is owned by nine retail broker-dealers, financial services firms and market makers. It was introduced in January 2019 with a goal of introducing new competition to the US stock markets space, competing with NYSE, Nasdaq and Cboe Global Markets.[1]

The exchange, which is awaiting SEC approval, is owned by Bank of America Merrill Lynch, Charles Schwab, Citadel Securities, E*TRADE, Fidelity Investments, Morgan Stanley, TD Ameritrade, UBS, and Virtu Financial.[2][3] These owners have invested $70 million in MEMX in initial funding, according to the Wall Street Journal.

MEMX aims to offer clients a unified order entry messaging standard, a simplified market data and distribution model, and simplified order types and order routing, according to an SEC filing.

History

A group of nine broker-dealers announced the formation of Members Exchange on January 7, 2019. The consortium said it was forming MEMX to reduce fixed costs for its members and increase transparency around how the costs are set.[4]

The exchange is awaiting regulatory approval from the Securities and Exchange Commission and aims to launch in the first half of 2020. It would be the 15th US stock exchange.[5]

In November 2019 MEMX said in a statement that it had filed with the SEC and, subject to approval, would go live in the middle of 2020. It also said it would begin client connectivity testing in the last quarter of 2019.[6]

Products and Services

Key People

References

  1. Group of Leading Retail Brokers, Financial Services Firms, Banks, and Global Market Makers Plan to Launch the Only Member-Owned Equities Exchange, MEMX™, Members Exchange. MEMX.
  2. Wall Street Firms Plan New Exchange to Challenge NYSE, Nasdaq; Morgan Stanley, Fidelity and Citadel Securities among backers of new ‘Members Exchange’. Wall Street Journal.
  3. What’s In Style? Member’s Exchange Brings Together Wall Street Behemoths To Take On Nasdaq, NYSE and Cboe Global Markets. John Lothian News.
  4. Former Instinet CEO tapped to head new Wall Street-backed exchange. Reuters.
  5. New Exchange Seeks SEC Nod to Take On NYSE, Nasdaq. The Wall Street Journal.
  6. MEMX targets mid-2020 launch after seeking green light from US regulator. The Trade News.