Wall Street-backed MEMX to launch options exchange By Reuters

© Reuters. FILE PHOTO: A street sign is seen in front of the New York Stock Exchange on Wall Street in New York, February 10, 2009. REUTERS/Eric Thayer

By John McCrank

NEW YORK (Reuters) – Members Exchange (MEMX), the fastest growing U.S. stock exchange, said on Tuesday it plans to launch an options exchange in the fourth quarter, pending regulatory approval, that will seek to reduce industry costs.

MEMX, which counts some of Wall Streets biggest firms among its investors, including BlackRock Inc (NYSE:), Goldman Sachs Group Inc (NYSE:) and JPMorgan Chase (NYSE:), launched its stock exchange in September 2020, to address an intense debate over fees between large exchange operators and their customers.

Taking an aggressive approach to pricing, MEMX has gained more than 4% market share, surpassing the volume of some exchanges run by Intercontinental Exchange (NYSE:) Inc’s New York Stock Exchange, Nasdaq Inc, and Cboe Global Markets (NYSE:).

“MEMX Options will use technological advancements to increase determinism, reduce costs and drive competitive improvements for our options members, just as we did in equities,” said MEMX Chief Executive Officer Jonathan Kellner.

The market operator worked with its members on establishing how to add value to the options space, Kellner said.

Other MEMX investors include BofA Securities, Charles Schwab (NYSE:) Corp, Citadel Securities, Fidelity Investments, Morgan Stanley (NYSE:), UBS, and Virtu Financial (NASDAQ:).

The Jersey City, New Jersey-based exchange was founded after years of complaints by brokers and other market participants over what they saw as unjustifiably high fees charged by most exchanges for things like market data and exchange connectivity.

MEMX began charging for market data in February at a significantly lower price than the large incumbent exchanges.

“As we progress, we look forward to lending our voice to help advance key issues in the U.S. equity options markets,” Kellner said.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*