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Brokers Form New Stock Market to Take on NYSE, Nasdaq, Cboe (1)

Jan. 7, 2019, 2:26 PM

A group of big banks and brokers is forming a new U.S. stock market, funneling years of frustration about how much exchanges charge into the creation of a competitor.

The nine founders, including Morgan Stanley, UBS Group AG, Citadel Securities LLC and Virtu Financial Inc., are seeking to “increase competition, improve operational transparency, further reduce fixed costs and simplify the execution of equity trading in the U.S.,” according to a statement Jan. 7. The new exchange will be known as Members Exchange, or MEMX.

The move recalls the days when the New York Stock Exchange and other publicly traded exchanges ...