MEMX Secures Backing from Goldman Sachs, JPMorgan & More

Members Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (MEMX), a new equities exchange that is set to rival the New York Stock Exchange (NYSE), Nasdaq, and Cboe Global Markets, has received backing from more Wall Street heavyweights, with Goldman Sachs, JPMorgan and Jane Street Capital putting their weight behind the project.

In a statement released on Thursday, the exchange announced that the three firms led a new round of strategic funding for MEMX, which is expected to launch on the 24th of July, 2020.

The details of the Funding Round Funding Round Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Startups look to raise capital can participate in a funding round. These refers to the various rounds of funding that occur upon proof of concept, customer base growth, and the probability of success. While they are various types of funding rounds, the most commonly seen in startups include the following funding rounds: Seed, Series A Fundraising, Series B Fundraising, and Series C Fundraising. In order for a funding round to take place, a valuation must be performed by analysts for the business Read this Term, such as the amount raised or the valuation at which the funding was made, wasn't disclosed. However, in a blog post, MEMX did say that it will start onboarding trading members later this month.

Furthermore, the exchange also expects to receive approval from the US regulator, the Securities and Exchange Commission (SEC), in the second quarter of this year.

The project is headed by several broker-dealers, banks, and high-frequency trading firms. The companies are Bank of America Merrill Lynch, Charles Schwab, Citadel Securities, E*TRADE, Fidelity Investments, Morgan Stanley, TD Ameritrade, UBS, and Virtu Financial, who have been onboard the project since the beginning of 2019, as Finance Magnates reported.

Commenting on the announcement, Jonathan Kellner, CEO, MEMX, said in the statement: "We are pleased that these three prominent market participants are joining us in our efforts to increase transparency, reduce fees, and focus on technological innovation in the equity markets."

Market players take on established exchanges again

Last year, the founders of the new exchange claimed that they could run the venue at a fraction of the cost that US major exchanges are currently charging. However, this is not the first time large industry players have taken on established exchanges.

In fact, almost ten years ago, BATS, a low-cost exchange, was created by a group of banks. Another group of industry giants launched Direct Edge, which also had the aim of low trading costs. So, where are they now? After quickly gaining market share, they merged, and are now owned by Cboe Global Markets.