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

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.