Fast-growing U.S. stock trading venue Direct Edge said on Thursday its wants to turn itself into two stock exchanges later this year.
The company said it filed applications with the U.S. Securities and Exchange Commission late on Wednesday. It is now an electronic communication network, or ECN, that matches equity transactions on two separate platforms……
……Direct Edge has consistently offered low prices in exchange-traded funds, or ETFs, products whose popularity has bloomed along with the venue. ETF volumes recently surpassed that of Nasdaq-listed stocks for the first time.
The New Jersey-based company is backed by Goldman Sachs Group Inc (GS.N), Citadel, Knight Capital Group Inc (NITE.O), and the International Securities Exchange, the second-biggest U.S. options market.
The backers drive trading to Direct Edge in an attempt to keep overall fees lower. The fee revenues U.S. venues derive from Nasdaq-listed stocks have fallen about 35 percent in two years, according to Equity Research Desk.