The largest Wall Street firms have agreed to launch a new exchange to compete with the Nasdaq and the NYSE.

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    On Monday, January 7, a consortium uniting one of the largest US investment companies announced plans to launch a new exchange. The site with the intended name MEMX (abbr. From Members Exchange) should become a competitor to the famous Nasdaq and NYSE, offering more favorable conditions for trade.

    Why do we need a new exchange

    For many years, brokers and traders from Wall Street have expressed dissatisfaction with the high commissions that the largest American stock exchanges had to pay. Now the companies Morgan Stanley, Fidelity Investments and Citadel Securities LLC have decided to change the current situation.

    In a statement to the press, they said that the new site should increase competition, which will lead to greater transparency, lower commissions and easier access to markets.

    In total, the consortium of founders of the new exchange will include nine companies, including Bank of America Merrill Lynch, Charles Schwab Corp., E * TRADE Financial Corp., TD Ameritrade Holdings Corp., UBS and Virtu Financial.

    MEMX Perspectives

    The founders of the new exchange plan to attract traders with lower commissions and tariffs for access to market data, as well as a high speed trading system (it will be built on the most relevant technologies).

    Last year, the US Securities and Exchange Commission (SEC) also drew attention to the excessive fees of the exchanges. In addition, the regulator abolished the increase in prices for access to data that the site made in May 2018.

    The MEMX administration plans to apply for a license to the SEC in early 2019.

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