BlackRock Gives Support to Nasdaq and NYSE Rival Exchange MEMX

The exchange has received more than $65 million in its latest investment round.

Members Exchange (MEMX), a new equities exchange that is set to rival the New York Stock Exchange (NYSE), Nasdaq, and Cboe Global Markets, has secured strategic financing from a number of heavyweights, such as BlackRock, closing its latest investment round with more than $65 million raised.

Those participating in the funding round was BlackRock, Wells Fargo, Flow Traders, Manikay Partners, and Williams Trading, a statement published on Tuesday said. As part of the transaction, BlackRock has assumed a seat on MEMX’s Board.

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Following the closure of this funding round, more than $135 million has been invested in the rival exchange. As Finance Magnates reported, the previous investors in MEMX were J.P. Morgan, Goldman Sachs, and Jane Street.

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Jonathan Kellner, CEO of MEMX
Jonathan Kellner, CEO at MEMX
Source: LinkedIn

Commenting on the latest cash injection, Jonathan Kellner, CEO of Members Exchange, said in the statement: “We are excited to welcome these five new investors to MEMX and further broaden our diverse consortium. Our mandate to build a market for all investors and further the market-structure debate on behalf of all participants is reinforced by BlackRock joining the board.”

“I thank the entire MEMX team for their diligence and dedication. Receiving these major financial commitments in this challenging environment is another sign that our hard work is paying off and that the MEMX mission remains as important as ever,” he said.

MEMX investor group expands

The MEMX project is headed by several broker-dealers, banks, and high-frequency trading firms. After this latest investment round, the investor group now includes TD Ameritrade, BofA Securities, BlackRock, Charles Schwab, Citadel Securities, E*Trade, Fidelity Investments, Flow Traders, Goldman Sachs, J.P. Morgan, Jane Street, Manikay Partners, Morgan Stanley, UBS, Virtu Financial, Wells Fargo, and Williams Trading.

“BlackRock has long been an advocate for market structure enhancements that increase transparency and efficiency,” Hubert De Jesus, Global Head of Market Structure and Electronic Trading at BlackRock added in the statement. “We look forward to engaging with the MEMX community to drive innovation in the marketplace that benefits our clients and end-investors.”

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