Wall Street firms are forming a new exchange to take on NYSE and Nasdaq

A slew of Wall Street banks and brokers are creating a new exchange venture to usurp the stock market duopoly of NYSE and Nasdaq. The venture, dubbed Members Exchange, will be run by nine banks, trading firms, and brokers, according to an exclusive report by Alexander Osipovich at the Wall Street Journal. Its CEO hasn't been announced. Fidelity, Virtu Financial, and Citadel Securities are among the firms comprising the new entity, which is preparing to apply for exchange status from the Securities and Exchange Commission. 

Brokers and exchanges have long squabbled over the mounting cost of market data. MEMX's lower fees could lure market participants away from NYSE and Nasdaq, which handle approximately half of all stock trading in the U.S., according to the WSJ. "We think with the right team we could run an exchange at a fraction of the cost of what the incumbents are offering,” said Virtu CEO Doug Cifu. 

MEMX has raised $70 million as part of fundraising round.