by Axios | 1.8.19
Nine major financial firms, including Morgan Stanley, Bank of America, and Fidelity Investments, are launching a new stock exchange — the Members Exchange, aka MEMX.
Details: MEMX expects to file an application with the Securities and Exchange Commission this year with plans to reduce costs and streamline the trading process, though it’ll probably be awhile before it’s up and running. Shares of NYSE's parent Intercontinental Exchange and the Nasdaq fell 2% after news of the newcomer broke.
Be smart: It's notable that MEMX is backed by Citadel Securities and Virtu Financial — the country's biggest stock traders, which each facilitate 20% of U.S. equity volume, per WSJ — in addition to the big financial firms.
What they're saying:
The bottom line: MEMX hasn't announced how much lower its fees will be, and there's no guarantee the platform will take market share from those that right now control 60% of trading volume.
Photo: Spencer Platt/Getty Images
Written by Axios
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There is one invariant rule in gambling. The house always wins. Having the banks own the exchange can only be good for the banks.
I have a fidelity account. Smart move for wall street!!
A new stock exchange is not going to solve anything. Greed & willingness to lie is still a big problem. JP Morgan Chase, Wells Fargo, Bank of America, Navy Federal Credit Union & First Bank Holding Company all defrauded the United States of America's economy. Their greed caused them to dig a pit for themselves. I installed a door, then the banks closed & welded it shut by lying. The more they lie or cover up wrong doing the worst things are going to get for them. Each bank told on themselves in their own words & actions with the internet recording every detail. The internet never forgets. Ignorance of the law is no excuse. The 2019 Financial Services Committee has all the details.
Sure, just another managed index that may or may not reflect any real value.
As long as the security is better. Sometimes it's good to improve things. Just bc it was good once doesn't mean it continues to be the best it can be.
This sounds like being the lawyer and the judge at the same time. Totally corrupt.
Morgan Stanley and crooked BOA ? Bad idea.
I’m leery of any changes to the financial institutions. I don’t trust them.
Like we need another institution of greed. Oh look, another casino.
This sounds like a NEW opportunity for corruption, which always harms the general consumers and the public.
This is bad news for working people, and good new for the elite. In other words, no. This is bad.
I need to hear from the the think tank finance system, the historical and future market trend setters. Let’s get those whom can articulate the methodology of current system trend in comparison to the proposed trend.
This is a bad idea. This request would not be made without the dream of making bigger profit for these financial companies. Who contributes to these profits, the average investor through hidden fees, slimmer margins, and market manipulation.
Why is this necessary? To make more $$$? To avoid oversight or control?
As long as the major companies that plan on using it keep their promise of backing and funding it then it should be fine. If they begin to force taxpayers to pay then it needs to be out to a vote.
The market is like religion, it only matters to about 37% of this nation. Do not use use tax dollars to support. The market does not serve the majority.
Members Exchange sounds like just another exclusive Country Club or similar institution which is available only to the wealthy. Stock fluctuations don't affect the majority of American workers because most can't afford to contribute to a 401K even if offered by their employer. I would imagine that this exchange would require a higher buy-in, restricting any investments by middle-class traders.
JUST ANOTHER SCAM BY BILLIONAIRE BROKERS
When you’re riding a tiger don’t dismount