A huge group of well-known financial partners have partnered to initiate MEMX (members exchange), which is an equities exchange. The group consisting of nine main bodies (broker-dealers, financial services, banks and global market makers), will all divide equity of the exchange amongst their businesses. With high expectations of competition, the exchange is focused to deliver a better standard towards investors and retailers. It is expected for the MEMX to apply for securities and exchange commissions in order to be able to start their work affirmative (in 2019).
The following is a list of the nine main bodies that worked hand in hand to found the MEMX:
- Bank of America Merrill Lynch
- Charles Schwab
- Citadel Securities
- Fidelity Investments
- Morgan Stanley
- TD Ameritrade
- Virtu Financial.
The main purpose behind the creation of MEMX is to provide better standards for trade in the area. Transparency in operations is what the market lacks and MEMX will focus to deliver that point. Furthermore, a reduction in fixed costs is expected from MEMX as a competitive edge compared to other currently existing companies. All these edges will be stirred with the benefits of all the different nine founding bodies and their tools. MEMIX is expected to provide a better trading option which is simple, faster, safer and cheaper.
Douglas Cifu, Chief Executive Officer of Virtu Financial was reported saying “The founding members of MEMX represent leading retail brokers, global banks and financial service firms, and market makers – a diverse array of market participants organizing for the common goal of improving markets for retail and institutional investors.” This would explain the main reason behind such a cooperation and the expected benefits from the move.