Nine financial giants have announced they will launch their own trading exchange, to be named the Members Exchange. Some notable names include Morgan Stanley (MS  ), Fidelity Investment, UBS (UBS  ) and Bank of America Merrill Lynch (NYSE: MER-K).

Since paperwork for this new stock exchange has just been initiated, it will not come into existence until at least 2020 as it must SEC approval to become a national securities exchange

"MEMX's mission is to increase competition, improve operational transparency, further reduce fixed costs, and simplify the execution of equity trading in the U.S.," said a press release announcing the exchange. "In addition, MEMX will represent the interests of its founders' collective client base, comprised of retail and institutional investors on U.S. market structure issues. MEMX will seek to offer a simple trading model with basic order types, the latest technology, and a simple, low-cost fee structure."

Since the announcement, Intercontinental Exchange's (ICE  ) shares have fallen by more than 2%; ICE is the company that owns NYSE. Nasdaq was also down at the news. Members Exchange has said it doesn't plan to compete with NYSE and Nasdaq to

"The founding members of MEMX represent leading retail brokers, global banks and financial service firms, and market makers - a diverse array of market participants organizing for the common goal of improving markets for retail and institutional investors," said Virtu Financial CEO Douglas Cifu, which is one of the founding companies. "The launching of MEMX is a testament to the market-wide demand for competition, innovation, and transparency."

It has been two years since the launch of a new Wall Street stock exchange, and the move comes as part of an ongoing trend that involves cheaper investing options and higher levels of transparency. The number of common investors in general have also increased dramatically in the past few years, yielding the need for a new, fresh market.

The last such exchange was called IEX, and attempted to quell the number of high-frequency trades carried out so as to make the overall stock market more equitable and accessible to common investors. IEX only recently listed its first publicly exchanged company, Interactive Brokers (IEX: IBKR), in October of 2018. There are currently 13 exchanges in the US.

Addressing prospective competition, Nasdaq said: "We welcome competition to our transparent, highly regulated equity markets. However, with more than 40 equity trading venues already in operation in the United States, we are keen to learn more about the value proposition of a new exchange."