Wall Street-backed MEMX obtains SEC approval for options trading platform

Rick Steves

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

The Securities and Exchange Commission has approved market operator MEMX’s rule filing to launch a platform for trading listed options.

MEMX Options is now authorized to leverage the strengths of MEMX’s exchange architecture and infrastructure, including a price time-model. The exchange is expected to launch in early 2023.

Since launching in the fall of 2020, MEMX has quickly grown to over 4% market share and has become a significant source for liquidity in U.S cash equities.

In addition, MEMX has proposed a series of common-sense equity market structure proposals, such as round lot and tick size reform. The exchange aims to offer its market data products at significantly lower pricing.

MEMX was founded in 2019 to provide a simpler platform and features to benefit both retail and institutional investors. It launched in the fall of 2020 and has now obtained the much-awaited SEC approval to launch the platform for trading listed options, MEMX Options.

MEMX is backed by Wall Street giants

MEMX stands for Members Exchange and started as a protest by banks and market makers against the rising data and connectivity fees charged by U.S. stock exchanges.

The company has locked in more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Chief executive Jonathan Kellner was previously the CEO of Nomura Holdings Inc.’s Instinet.

Jonathan Kellner, Chief Executive Officer at MEMX, commented: “We’re pleased to have received SEC approval as we continue to prepare for our launch. We’re excited to build upon our successful track record of delivering value to market participants. MEMX Options will use technological advancements to increase determinism, reduce costs and drive competitive improvements for our options members, just as we did in equities.”

Geralyn Endo, Member Experience for MEMX Options, said: “The creation of MEMX Options was driven by a desire to extend the vision of a member-aligned market to the options community. Over the past few months, we have had productive discussions with a wide range of participants to understand where we can add value to the options exchange landscape. SEC approval of our exchange takes us one step closer to realizing the vision of an options exchange dedicated to advancing its members’ needs.”

  • Read this next

    Retail FX

    Weekly Roundup: FX prop firms switch to cTrader, who moved $1.35B BTC?

    The foreign exchange and cryptocurrency markets are always active, and this past week was no exception. Stay ahead with a selection of essential stories and updates that matter most to market participants.

    Digital Assets

    Bitcoin breaks all records with a massive $1.347 billion transaction

    This transaction has surpassed previous records, setting a new benchmark for Bitcoin trades. Before this event, the largest Bitcoin transactions included a $1.1 billion trade in April 2020 involving 161,500 BTC, and other significant transactions ranging from $491 million to $1.033 billion throughout 2019 and 2020.

    Digital Assets

    Uniswap debuts Ethereum ‘uni.eth’ subdomains

    Decentralized exchange platform Uniswap has integrated Ethereum Name Service (ENS), allowing users to create human-readable domain names and cryptocurrency wallet addresses using .eth endings.

    Web3

    Magic Square Expands with TruePNL Acquisition

    Binance’s web3 app store, Magic Square, acquired token platform TruePNL in a cash deal this week for an undisclosed sum. The deal brings TruePNL’s infrastructure (excluding branding & token) under Magic Square’s wing. Initially seeking a partnership, Magic Square opted for a full acquisition.

    Crypto Insider

    The Future of Prediction Markets? Zeitgeist Launches Decentralized Court System

    Polkadot-powered prediction market protocol Zeitgeist has announced the launch of its latest innovation: a decentralized court system.

    Digital Assets

    Crypto exchange Kraken fires back at SEC lawsuit, claiming overreach

    Crypto exchange Kraken is pushing back against the U.S. Securities and Exchange Commission (SEC), seeking to toss out a lawsuit that accused the platform of operating without proper registration.

    Industry News

    Exness Named a Best Place to Work in 2024

     Global leader Exness, tops in retail trading volume, earns 2024 “Best Place to Work” award, cementing its employee-centric culture after three prior years of winning the Cyprus national title.

    Digital Assets

    Swan Bitcoin taps Bakkt for crypto offering in the US

    “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”

    Digital Assets

    Polkadot Awards Bifrost a 500,000 DOT Loan to Enhance Liquid Staking Adoption

    Bifrost, a leader in liquid staking solutions, has secured a 500,000 DOT loan from Polkadot’s treasury to expand the reach and utility of its vDOT product within the ecosystem.

    <