Wall Street Big Wigs Plan Exchange to Challenge NYSE, Nasdaq

Bankers plotting new exclusive exchange

Image Credits: Spencer Platt/Getty Images.

Morgan Stanley, Fidelity Investments, Citadel Securities LLC and a host of other financial companies have agreed to jointly launch a new low-cost bourse that will compete with the New York Stock Exchange and Nasdaq.

In a joint statement on Monday, the companies said the new exchange will look to increase competition, improve operational transparency, reduce fixed costs and simplify equity trading in the U.S.

Traders and financial professionals work at the opening bell on the floor of the New York Stock Exchange (Drew Angerer/Getty Images)

The new venture will be called Members Exchange and will be funded and controlled by nine institutions, including Bank of America Merrill Lynch, Charles Schwab Corp, E*TRADE Financial Corp, TD Ameritrade Holdings Corp, UBS and Virtu Financial.

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