eExchange began as a search for a way to automate trading of unlisted securities in Canada. In the process of finding a solution, we found a number of under serviced niche markets of interest to retail investors in the United States and elsewhere. These niche markets include: municipal bonds, foreign currency, unlisted and foreign securities, Put & Call options and after-hours trading.
Finding an economical solution for after-hours trading led to consolidating certain functions of the exchange, broker & clearing house into an integrated exchange that operates 24 hours a day with cash T+0 settlement. The eExchange concept received a boost from a comment about settlement that Alan Greenspan made to the Financial Markets Conference; Greenspan referred to settlement on T+0 as the ultimate goal.
While eExchange incorporates certain broker functions such as client order entry and client accounting, eExchange does not compete with traditional broker activities such as underwriting, arbitrage, trading, market making, portfolio management, investment research and financial advice. It is anticipated that brokers will be market makers for many of the securities that trade on eExchange.
We believe that 24 hour trading for securities and foreign currencies is presently unavailable to retail investors. At this time, none of the exchanges offer weekend or 24-hour a day trading.
At present, extended after-hours trading is limited to large investors and financial institutions. A Wall Street Journal advertisement provides a glimpse of who trades after-hours: Soros Financial Management placed an advertisement for a night execution trader to work the 2am to 10am shift.
eExchange was created by a small group of developers, including Russell Martel and Damon Malkiewicz.