ASTN as a standard in global financial transactions
"The system prices each security and processes the transaction straight through to clearing and settlement, with no human intervention and no market impact." ANONYMITY is the key in ASTN's spreadless trading systems.
Ashton CEO Fredric Rittereiser said, "While various pricing mechanisms based on volume weighted averaging already exist, there is no uniform, objective, industry-wide standard. Our system, with its fully automated algorithms, operating as a facility of a national exchange with the approval of the SEC, has the potential to become the standard for the volume weighted average that investors need."
Mr. Rittereiser emphasized, as a unique benefit, "Ashton's VWAP(R) is the only system that combines the means to execute anonymously at the precise benchmark price."
... Ashton began the system's rollout in August, "on the PHLX with a group of Institutional customers. This controlled, live trading period, involving a limited number of securities, will serve to validate the features and benefits of Ashton's proprietary electronic system. The system will be expanded in a phased approach to include larger institutions on a global basis."
Fred goes on to say, "Initial reaction to the system by major market players has been so encouraging that we would expect to reach critical mass well before the end of the year. Meanwhile, we've been shipping and installing systems to customers who are already enrolled, and we'll continue our efforts to integrate additional institutions, brokers, dealers and third-party vendors," Mr. Rittereiser said.
Ashton Technology Group is developing a family of on-line transaction systems using advanced telecommunication technologies, computing technologies, together with data and information security technologies to facilitate global financial transactions. Ashton's proprietary transaction systems are made available to end users through proprietary networks, third parties, and the Internet.
This recent drift down has taken us to a massive support level here. The rewards to those who buy on this support in the face of the risk they are taking at this moment will be rewarded.
The key is in what Fred is saying. If this is truly going to be a standard for ATS (as well as other e-commerce transactions beyond the eVWAP) which is ONE product which many seem so focused. Try and imagine the valuation given to such a standard. ASTN has the framework in place along with the vision to be the major TRANSACTIONAL PLAYER as an exchange. ASTN is determined to be a standard as a transactional player. Look at the other standards we have seen. YHOO is a standard in Internet Portals, AOL is a standard in Internet providers, NITE is a standard in Market Makers (money made from a spread), AMZN is a standard in E-Commerce, EGRP could be called a standard in Online Trading. Take your pick of what you see as a standard as a guideline to what sort of valuations standards achieve.
What then could possibly be seen or expected for this company if it were to become the standard for ATS as well as future transactions in e-commerce? This company has roughly 24M shares outstanding and much less in the float. The key is trying to understand the vision ASTN has and how well equipped they are at achieving this vision. ASTN and its leadership are not strangers to establishing standards and having a keen understanding of the direction of the marketplace. Time and patience will tell. At this point it is unclear if they truly will be that standard, but with high risk can come high reward.
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