Consolidation may be necessary in
the equities exchange sector as new entrants look to enter an
already fragmented market, but sources suggest there is still
room if new names can provide unique offerings.
New entrants to the already 13-strong field include the
Long-Term Stock Exchange (LTSE) which looks to service Silicon
Valley, and the Members Exchange (MEMX), which is being set up
by a number of high-profile Wall Street trading platforms
including Morgan Stanley, Fidelity Investments and Citadel
Of the existing 13, 12 are owned and operated by just three
companies; the New York Stock Exchange, Nasdaq and the Chicago
Board Options Exchange (Cboe). The other is
IEX, which launched in 2013 as an alternative trading system
Bumps in the road: IEX on the record
Although it’s far from certain that these new
exchanges will succeed, some believe the number is too high.