Quick read: How and why MEMX could take on the exchange incumbents
Tired of paying what they view as exorbitant fees to the incumbents, some large US brokers, banks and financial services firms have now decided to take the US equity exchanges on at their own game. The names involved and the amount of order flow that they now control mean that – this time – it could just work.
The new firm’s stated aim is to offer a simple trading model with basic order types, the latest technology and a simple, low cost fee structure; but just how it plans to do so remains unclear. It has nine members: Morgan Stanley, Fidelity, Citadel Securities, Bank of America Merrill Lynch, Charles Schwab, E*Trade, TD Ameritrade, UBS and Virtu. There are many notable absentees, including Goldman Sachs and Citi.