Bank stocks Bank of America (BAC), Morgan Stanley (MS) and seven other big financial institutions said Monday they plan to launch a new national stock exchange, to increase competition with the likes of the New York Stock Exchange and the Nasdaq, reduce fees and simplify trading.
The nine financial institutions said MEMX would file an application with the SEC early this year to get approval to run as an exchange. MEMX would be owned by its founding members, the financial institutions said in a release.
Wall Street has long complained of higher fees charged by the bigger U.S. exchanges, the Wall Street Journal noted on Monday.
The other founding members of the new exchange are TD Ameritrade (AMTD), Charles Schwab (SCHW), UBS (UBS), Citadel Securities, E-Trade Financial (ETFC), Fidelity Investments, and Virtu Financial (VIRT).
"As a founding member of MEMX, we look forward to being part of an initiative we believe will transform markets for the better," Steve Quirk, executive vice president of trading and education at TD Ameritrade
"All types of investors could benefit from this simplified investing experience that will foster competition and promote practices that put the needs of investors first," he continued.
NYSE, Nasdaq Owners Fall
Intercontinental Exchange (ICE), the company that owns the NYSE, sank 2.75% in the stock market today. The stock is below its 200-day line. Nasdaq Inc. (NDAQ), which runs the Nasdaq Stock Exchange, retreated 2.6%. CBOE (CBOE), which runs the largest U.S. options exchange, fell 1.4%.
The massive derivatives marketplace CME Group (CME) fell 0.6% to 183.64. The stock is in a flat base with a 197.18 buy point.
Virtu Financial CEO Douglas Cifu said in the statement that MEMX would increase transparency for both institutional investors and nonprofessional retail investors. The platform would offer basic order types and a "simple, low-cost fee structure."
According to the MEMX website, the platform will offer a "limited number" of order types "to promote simple and transparent interactions."
Among bank stocks, Bank of America were flat. Morgan Stanley stock was up 0.8%.
YOU MIGHT ALSO LIKE:
The Blockchain Technology Revolution Is About To Remake The Stock Market
Stock Market Rally: 5 Top Stocks Poised To Charge Ahead With Bulls
As Market Runs, Top Stocks Nike, Lululemon, Foot Locker Get In Shape
Best Dividend Stocks: Verizon Shifts Focus To Tech For Future Growth
Score Big Dividend Payouts With These High-Yielding Stock Plays
The post These Financial Giants Want To Go Head To Head With NYSE, Nasdaq appeared first on Investor's Business Daily.
http://feedproxy.google.com/~r/BusinessRss/~3/KG4-qHAEp24/
No comments:
Post a Comment