Jan 8, 2019

A new stock exchange is on the way

Photo: Spencer Platt/Getty Images

Nine major financial firms, including Morgan Stanley, Bank of America, and Fidelity Investments, are launching a new stock exchange — the Members Exchange, aka MEMX.

Details: MEMX expects to file an application with the Securities and Exchange Commission this year with plans to reduce costs and streamline the trading process, though it’ll probably be awhile before it’s up and running. Shares of NYSE's parent Intercontinental Exchange and the Nasdaq fell 2% after news of the newcomer broke.

Be smart: It's notable that MEMX is backed by Citadel Securities and Virtu Financial — the country's biggest stock traders, which each facilitate 20% of U.S. equity volume, per WSJ — in addition to the big financial firms.

  • Despite being run by some big players, a new exchange doesn't guarantee they'll pull liquidity from the NYSE or Nasdaq.
  • Most traders don't pick and choose which exchange to participate in. They use all or many of the exchanges.

What they're saying:

  • Nasdaq's statement to CNBC: "We welcome competition to our transparent, highly regulated equity markets. However, with more than 40 equity trading venues already in operation in the United States, we are keen to learn more about the value proposition of a new exchange."
  • Cboe's statement to WSJ: "Healthy competition ups the game for all of us and we welcome new entrants into the space.”

The bottom line: MEMX hasn't announced how much lower its fees will be, and there's no guarantee the platform will take market share from those that right now control 60% of trading volume.

Go deeper

Trump announces 30-day extension of coronavirus guidelines

President Trump with Dr. Anthony Fauci. Photo: Drew Angerer/Getty Images

President Trump announced on Sunday that his administration will extend its "15 Days to Slow the Spread" guidelines until April 30 in an effort to stop the spread of coronavirus, which has now infected more than 130,000 Americans and killed nearly 2,500.

Why it matters: Top advisers to the president have been seeking to steer him away from Easter as an arbitrary deadline for the U.S. to open parts of its economy, amid warnings from health officials that loosening restrictions could cause the number of coronavirus cases to skyrocket.

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 5 p.m. ET: 716,101 — Total deaths: 33,854 — Total recoveries: 148,900.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 5 p.m. ET: 136,880 — Total deaths: 2,409 — Total recoveries: 2,612.
  3. Federal government latest: The first federal prisoner to die from coronavirus was reported from a correctional facility in Louisiana on Sunday.
  4. Public health updates: Fauci says 100,000 to 200,000 Americans could die from virus.
  5. State updates: Louisiana governor says state is on track to exceed ventilator capacity by end of this week — Cuomo says Trump's mandatory quarantine comments "panicked" some people into fleeing New York
  6. World updates: Italy on Sunday reports 756 new deaths, bringing its total 10,779. Spain reports almost 840 dead, another new daily record that bring its total to over 6,500.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Trump touts press briefing "ratings" as U.S. coronavirus case surge

Photo: Drew Angerer/Getty Images

President Trump sent about a half-dozen tweets on Sunday touting the high television ratings that his coronavirus press briefings have received, selectively citing a New York Times article that compared them to "The Bachelor" and "Monday Night Football."

Why it matters: The president has been holding daily press briefings in the weeks since the coronavirus pandemic was declared, but news outlets have struggled with how to cover them live — as Trump has repeatedly been found to spread misinformation and contradict public health officials.