There is much more to Asia4sale and Swiftrade that the SSB's Claim
From Coach on RB: Asia4sale and Swiftrade are expected to be low-cost
operations with good contributions to margin....
Swiftrade has been mocked as only receiving a $40 referral fee from West America Securities. But that is just ONE source of potential revenue!
"SWIFTRADE" (www.swiftrade.com), is an online trading and financial services portal, which provides Internet access for retail and Institutional users to International electronic stock trading. Currently, the Swiftrade site is utilized in a joint venture with West America Securities Corporation, a fully registered broker dealer registered in all States in the USA, which provides users direct electronic access to trading of stocks, options, mutual funds and other financial instruments available on U.S. markets and exchanges.
West America Securities has agreed to pay Swiftrade, (a wholly-owned subsidiary of Momentum Internet, incorporated under the laws of the British Virgin Islands) referral fees for each new account. It is the first online trading system designed specifically for, and targeted at, overseas investors trading in the U.S. stock markets. Trades are cleared through West America Securities and its clearing agent, Emmett A. Larkin, Inc. Swiftrade plans to facilitate online trading from a single Internet Portal on several of the world's largest stock markets, including London, Hong Kong Sydney, Singapore, and Frankfurt in 1999, with others to be added in the future.
In addition to the joint venture with West America Securities for the U.S. markets, Momentum Internet has entered into strategic partnership agreements in the brokerage industries in Hong Kong
and London. Swiftrade's proprietary "plug and play" technology, developed by Momentum Internet for the purpose of linking Swiftrade users with stock exchanges in London and Hong Kong, provides a direct link to the floor of these and other non-U.S. Stock Exchanges. The software, complete with live feeds from the exchange floors through Reuters Hong Kong Limited ("Reuters HK"), ensures accurate trade execution, instant confirmation of trades and accurate balances and positions.
Momentum Internet receives transaction (order) fees from its partner brokerages in London and Hong Kong. Neither the Company or any of its subsidiaries is directly involved in the brokerage business, or owns or operates an "online brokerage." The Company is in the business of the web site creation, management and exposure. The Company exposes the web site to the general public using a variety of methods, including some of its own high traffic Internet technology.
Swiftrade can represent more than one broker in each market and be
readily positioned in any other market where the Company sees growth
opportunities. Minimal spending is required for advertising and
infrastructure that brokerage house typically must spend to maintain market share. Swiftrade shares in transaction fees without the burden of increasing costs.
Swiftrade, generates front-end revenue from referral fees per trading account; but projects substantially higher future revenues from backend fees from transactions (orders), and profit sharing agreements with its broker/dealer partners on various Stock Exchanges. Swiftrade plans to facilitate online trading from a single Internet Portal on several of the world's largest stock markets, including London, Hong Kong Sydney, Singapore, and Frankfurt in 1999, with others to be added in the future.
In addition to the joint venture with West America Securities for the U.S. markets, Momentum Internet has entered into strategic partnership agreements in the brokerage industries in Hong Kong
and London. On May 18, 1999, Momentum Internet entered into an Agreement with Options Direct (Europe), a stock broker duly licensed under the laws of England, under which Momentum Internet would provide Internet connectivity, technical support, design and construction of Option's Direct web pages to be hosted on Momentum
Internet's Swiftrade websites.
Momentum Internet will also host Option's Direct trading and portfolio management software on Swiftrade's website. The term of this agreement is for a period of five (5) years. As compensation for the services to be provided by Momentum Internet, Options Direct agrees to pay 15% of the gross commissions earned by Options Direct arising directly or indirectly from the utilization of the services developed by Momentum Internet for Options Direct for the first 50 trades per trading day, and 25% of the gross commissions earned by Options Direct on trades over 50 per day. A copy of the Agreement with Options Direct is attached hereto and incorporated herein by this reference.
On July, 1999, (thats right, JULY 99, everything else was done before July 99) Swiftrade entered into an Online Stock Trading Agreement
with WdoT.rade, Inc., a division of West American Securities Corporation ("West America"), a registered broker-dealer and member of the NASD. Under the terms of the agreement Swiftrade will design, host and manage a website for WdoT.rade as an online trading portal to provide international investors with 24-hour direct access to the United States Securities market through West America.
WdoT.rade/West America shall pay Swiftrade a referral fee of $40 per account opened through the services and facilities provided by Swiftrade. A copy of the Online Stock Trading Agreement is attached hereto and incorporated herein by this reference.
More to follow...
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