Members Exchange (MEMX), a new market operator hoping to take on Nyse, Nasdaq and Cboe Global Markets, has closed out a $65 million funding round, with investments from Wall Street heavyweight backers including Wells Fargo and BlackRock.
Flow Traders, Manikay Partners, and Williams Trading all participated in the round, joining previously announced backers JP Morgan, Goldman Sachs and Jane Street. BlackRock assumes a seat on the MEMX board.
MEMX secured SEC approval earlier this month and is planning to launch its US equity exchange in the third quarter, vowing to increase competition, improve operational transparency, cut costs and simplify the execution of equity trading in the US. The new entity is promising a simple trading model with basic order types using the latest technology.
In addition to the participants in its latest funding round, the venture has the backing of Bank of America Merrill Lynch, Charles Schwab, Citadel Securities, TD Ameritrade, UBS and Virtu Financial as it seeks to upset the dominance of the established market operators.
Says the MEMX investor board: "We are pleased to welcome these additional influential and experienced firms that understand the dynamics of the US equity market. Their investment represents continued validation of the MEMX model, and we look forward to adding their voices to our broad-based consortium."