[ M A R K E T
R E V I E W
|
E X C H A N G E S ]
MEMX:
The
Bank o
f Ameri Founders
ca Merr
Schwab
ill Ly
, C
Fidelity itadel Securit nch, Charles
ies
Investm
ents, M , E*TRADE,
Amerit
rade, U
organ S
BS, Virt
t
u Finan anley, TD
cial
“Each time a new entrant was
successful, it was in part because
its interests were in line with its
members and because it had mem-
bers represented in its cap table,”
Mindlin said. “It may look like a
rinse-and-repeat exercise when a
consortium of banks, brokerages,
and high-frequency trading firms
band together to launch a new US
exchange such as MEMX. But the
market’s structure is different than
it was the last two times.”
Aligned interests
Considering the backdrop of bitter
debates between Wall Street and
regulated exchanges on the costs of
data and access, launching an ex-
change focused on lowering fees and
simplifying market structure clearly
indicates that MEMX’s interests are
aligned with its members.
But those members, including
Bank of America Merrill Lynch,
Charles Schwab, Citadel Securities,
E*TRADE, Fidelity Investments,
Morgan Stanley, TD Ameritrade,
UBS and Virtu Financial, could
have a long road ahead.
Issue 59 // TheTradeNews.com // 51