SOON NO MORE MM'S
Soon no more MM's
GlobeNet Beta-Tests NASD-Approved ATS System
By Jack Burney
Published by OTCNN.com
07/24/2000 08:15 AM CST
GlobeNet Capital Corporation promises “to revolutionize the trading of OTCBB
securities” with its proprietary Alternative Trading System, and this time, the NASD has
given its nod of approval.
GlobeNet, a registered broker/dealer, is beta-testing its ATS and will “shortly” launch
the operation of GlobeNet ATS, “an impartial and fully automated alternative trading
system for OTCBB securities, according to Christopher R. Barber, VP and Chief
Technology Officer.
GlobeNet has received NASD approval to operate as an ATS under SEC regulation,
Barber said. With an anticipated launch of operations during the third quarter of 2000.
GlobeNet is poised to become the first Internet based securities market offering fully
automated OTCBB trading.
Symbols being used in the beta-testing include AMDI, ARET, IFTP, LRCM, MPTV,
MVEE, NCTI, PCBM, SFAD, TSIG, and TTRIF. Barber listed the “efficiencies” its ATS
brings to the OTCBB market, including:
Automated Execution - Much more than a simple quote or routing system, GlobeNet
offers true automated execution of orders for OTCBB securities.
Impartial Order Matching - GlobeNet's system employs an impartial order-matching
algorithm designed to provide incoming orders with the best available execution for
OTCBB orders.
Open Order Books - GlobeNet will provide real-time online access to its order books,
improving total transparency of OTCBB pricing.
Connectivity Options- GlobeNet provides a myriad of ways for market participants to
employ its services including, a hosted browser-based user interface, the FIX Protocol
and a proprietary application-programming interface (API). Decimalization - All
GlobeNet trading will take place in decimalized prices, to four decimal places.
“I believe that GlobeNet represents the most compelling value proposition ever for the
trading of OTCBB securities.” Barber said. “No longer must investors be subject to
inefficient information dissemination, monopolistic pricing and execution latency. There
is a better way.”
Translation: Investors will no longer be subject to MMM. The only catch: You have to
subscribe.
Wamex Holdings, Inc. had announced a similar ATS system, but without NASD
approval, and its projected introduction was throttled by the SEC and WAMX stock was
banished from the Board, to the dismay of its hopeful investors. No such problem exist
with GlobeNet’s ATS.
Over the next month GlobeNet will be testing its core trading engine, Trading Desk
Services software, its proprietary Order Management System, firm connectivity and
fail-over recovery systems.
Once in operation, the ATS will be capable of processing over 5000 orders per
second. Its Order Books will have a capacity for 10 million orders, plus full recoverability
capabilities so no orders are lost. Limit Order protection rules are already operational,
and price improvement opportunities are available for both sides.
In addition to limit orders, GlobeNet will accept Market and Match orders from its
subscribers. The Market order will allow subscribers to enter an order to be filled at the
most advantageous price available when the order reaches processing by the trading
system. The Match order is a proprietary GlobeNet order type, indicating a willingness
to trade at the dynamically calculated mid-point between the nationally disseminated
best bid and best ask prices.
GlobeNet will offer subscribers use of a proprietary Order Management System for
communications with its system, which will provide an easy to use interface for order
entry and management of trading.
GlobeNet ATS will be physically based in a new facility in Altamonte Springs, Florida,
big enough to accommodate GlobeNet's current and future growth requirements. A
sequel technology site is planned in the Southwestern United States, replicating in
real-time the existing site in Central Florida, to give GlobeNet complete geographical
redundancy, for uninterrupted 24/7 service.
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