Wall Street launches new stock exchange, taking direct aim at NYSE and Nasdaq

[brooklynite]

Source: CNN

New York (CNN Business)The New York Stock Exchange and Nasdaq are hearing some footsteps behind them today.

A high-profile group of banks, brokerages and market makers revealed plans on Monday to join forces and start their own trading venue called the Members Exchange.

The launch of the new exchange, backed by power players like Bank of America Merrill Lynch (BAC), UBS, Citadel Securities and Fidelity Investments, underscores longstanding frustrations with the current system.

In particular, brokerages and market makers are upset with the cost that leading exchanges charge for access to the lucrative data feeds that are used to monitor stock prices.

Read more: https://www.cnn.com/2019/01/07/investing/wall-street-exchange-nyse-nasdaq/index.html

[Farmer-Rick]

1. Two sides to that story

From the link

"One industry executive complained that some of the companies involved in the Members Exchange have been hit with lawsuits and fines for alleged equity trading violations. For instance, last year Bank of America Merrill Lynch admitted to "systematically misleading clients" between 2008 and 2013 about how orders were handled for more than 4 billion shares of stock.

"They're letting the fox build the henhouse," the executive said."

Are they just trying to get away from oversight or are they really being over charged for data feeds?

[PatSeg]

2. Yeah, I was wondering if this was a good thing

considering who all is involved. Not exactly players I would be inclined to trust.

[Wellstone ruled]

5. You are so right.

back to the days of the old Bucket Trading of the 1890's.

[kimbutgar]

3. After working in the industry for 25+ until 2013 I would not be inclined to trade in these

Exchanges. Unregulated and no consumer protections. They will rip off the small investor at the behest of the hedge funds and big institutional funds like Fidelity.

[turbinetree]

4. This reminds me of the book........................

Raging Bulls: How Wall Street Got Addicted to Light-Speed Trading

Editor’s note: One of the most interesting things about the catastrophe at Knight Capital Group—the trading firm that lost $440 million this week—is the speed of the collapse. News reports describe the bulk of the bad trades happening in less than an hour, a computer-driven descent that has the financial community once again asking if its pursuit of profits has led to software agents that are fast yet dumb and out of control. We’re posting this story in advance of its publication in Wired’s September issue because it examines how Wall Street has gotten to the point where flash failures come with increasing frequency, and how much further traders seem willing to go in pursuit of ever-greater speed.


https://www.wired.com/2012/08/ff_wallstreet_trading/