Members Exchange Low-Cost Exchange Appears In US

By post The Wall Street Journal, in the summer of 2020, the new Members Exchange will be launched in the United States. Its main idea is to reduce transaction fees to a minimum, thus attracting investors and competing with the NASDAQ and the New York Stock Exchange.

We understand what Members Exchange is and who needs this project.

What is a low-cost exchange?

The Members Exchange project was launched in 2019 by nine influential financial companies, banks and brokerage firms, including Bank of America Merrill Lynch, UBS, Morgan Stanley, Citadel Securities and others.

The main goal of the project is to create an exchange with transparent processes for investors and low prices. The project sees the largest US exchanges NASDAQ and NYSE as its main competitors.

MEMX Exchange Development Plan

Why do I need another exchange

According to WSJ, large financial companies were dissatisfied with the commissions of exchange platforms, as well as the cost of their services – for example, access to market data.

MEMX plans to reduce fees to a minimum and seriously reduce the price of data access services. In theory, this should lead to lower prices and other exchanges.

Currently, there is only one exchange in the United States, which the three largest players in this market do not own – International Exchange, NASDAQ or Cboe Global Markets (Chicago Exchange) – this is the IEX platform (we wrote about it here).

You can buy shares of various American companies from Russia without having to open a separate brokerage account with foreign brokers. Using the market foreign securities of the St. Petersburg Exchange investors can buy 500 liquid shares of leading companies in all sectors of the global economy, including all shares of the S&P 500 index.

To make transactions with such shares you need a brokerage account – open it can online.

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