e-Exchange is a real-time, 24 hours/day electronic stock exchange. Both corporate and individual members can trade directly with one another by posting orders on an electronic global book trading market. e-Exchange integrates the exchange, broker, clearing house and related banking functions. Our 24 hour exchange is in the latter stage of development and we are currently doing real time online testing.
Jay Cash’s view of the Danish Krone US$ trading market. The global book can display any number of orders so that any investor can see the depth of the market. The Trader-ID column contains investor pseudonyms or advertising if they wish other investors to contact them.
Our Real Time Advantage: e-Exchange operates in real time. Everything is real time! Investor accounts, member-broker accounts, account status and margin displays are in real time. Of course quotes and trade are in real time. When an investor buys a security at 10:00 PM, the transaction is reported in real time; the investor’s account is updated in real time and his security positions are revalued and margined in real time.
Most, if not all, brokers still use batch accounting systems for client records; these batch systems are not real time. Our real time advantage provides e-Exchange with a window to establish a profitable position in the marketplace. We are unaware of any direct competitors to our innovative integrated real time exchange for individual investors.
Competition: e-Exchange does not compete with existing exchanges nor with brokers. The objective of e-Exchange is to create new business by exploiting niche markets and under serviced areas rather than compete directly with the brokerage community. Our plans include the licensing of our real time trading service to brokers that presently do not provide online trading to their clients.
Live trading: e-Exchange can begin live currency or securities trading as early as 2008. Trading of securities can begin once an exchange license is acquired. We are currently do real time online testing.
Our objective: Our short term objective is to provide is to provide 24 hour real time software and/or an electronic marketplace for the following niche markets:
- Unlisted securities presently without an electronic marketplace
- Call & Put options
- Gold cullion coins and other fungible collectibles
- Foreign and domestic securities seeking to extend their trading hours
- Foreign currencies
We have a competitive advantage with the following features of e-Exchange:
- Real time accounting and trading; cash settlement (T+0)
- 7 x 24 direct investor-to-investor trading
- Trader-ID to facilitate contacts between investors & dealers
- Real time portfolio margining across multiple related accounts in any combination of US$ or Canadian$ accounts
- 28 order types including hidden Fill-bids-only and prearranged cross normally available only to professional traders
- Display of all visible orders in a global book Trading-market
- Common platform for trading and settlement
Technology: e-Exchange has been designed as a real-time system that is highly reliable, secure and scalable. It is designed in a manner that allows for:
- Rapid development and deployment of new software features in response to changing information needs and business requirements
- Effective data security among system users and system security protection against external threats
- Efficient processing of online transaction data
The e-Exchange system has been developed using Microsoft technology and a three-tier applications architecture.
Market Potential: Small exchanges servicing niche markets can be profitable. The very profitable not-for-profit Alberta Stock Exchange, “ASE”, is an example of a successful small exchange. During the four years 1995 to 1998, the ASE had an average operating profit of $2-million annually on average revenue of $9.9-million. During the same four years, the ASE increased its capital from $12.9-million to $18.6-million. e-Exchange has the potential to duplicate the success of the ASE and more.
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