Connect with us

Hi, what are you looking for?

Stocks

New ‘Members Exchange’ In Planning

The newly planned Member’s Exchange is hoping to compete with the Nasdaq and the New York Stock Exchange. Nine financial heavyweights are collaborating to make the ambitious plan come to life. The Member’s Exchange isn’t expected to gain SEC approval until 2020 at the earliest. However, the new exchange is backed by American financial superpowers Morgan Stanley, UBS, and Bank of America, giving the exchange in the making some serious firepower.

There are multiple reasons for these companies to justify opening a new stock exchange. Among these reasons, there is the simple lack of an alternative equities exchanges. By spreading sales orders to new exchanges, volatility may be reduced. There are also concerns over the trading mechanisms employed at the NYSE, which includes high-speed trading that contributes to volatility. The new Member’s Exchange is expected to employ newer practices and technology, including blockchain. Ultimately, the backers of the Member’s Exchange hope to shake up the exchange markets.

The main selling point of the new exchange, however, is simplifying the trading process, while offering lower fees. At first, it is possible that a new exchange could cause the others to lose money in the short term. However, if the end result is a better equity exchange, and by extension a better broader exchange culture, the move could prove positive for all involved.

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...