Good questions, Keith ... the answers to some are probably not out in public yet ... i just tried that transcript page on ceocast.com but it is still blank, i sure wish stuff like that came in plain text first before all the dumb audio/video bandwidth hogs ... anyway, Toby gave some hints in that interview.
The way i imagine it is - SEG will supply the use of the DAS to the broker allies as part of existing agreements with them, or if with an added initial cost then not a large one, but rather ongoing fees per transaction ... i think when TC raises the idea of selling the software he means to others outside the system ... don't really know, though.
Ok [i'm listening to the ceocast.com thing now] - go to the six-minute point in that interview ... gives the best hints, 'transaction fees on every click of the mouse' ... this would seem to me to have the greatest potential if the system works, much better than selling the intellectual property outright on a cash-in-front basis ..... [he also says seglobaltrader.com to be launched within the next thirty days, beginnings of revenue to come within ninety days] [that's paraphrased] [interview date was 23/02, Friday]
I would expect the greatest potential to lie in per-transaction fees, fees low enough to be attractive to traders ... which means the $10/trade mentioned on stockhouse would be way out of line ... imho, something maybe one-tenth to one-quarter of that directly to SEG is more likely ... remember that the US broker ally and the clearing house must be paid from the commission as well .... this is a thing where you make it on volume or you don't make it at all ... imho.
Interesting posts on SH this morning, here's one with a reply to it below -
stockhouse.ca
stockhouse.ca
... two major points i'd add to these -
1. investors/traders/speculators the world over watch the US markets, they are the planet's financial centre for a long time now .... the US economy is well-known for its vigourous bounces, which come about because they are willing to write off the losers and get on with the winners, and because they just plain have more capital .... also US market information flow is far superior even to our Great White North [just compare quick DD on edgar and sedar], there's just more of it, more detailed, and it's faster ... just try finding a comprehensive and up-to-date and free source of insider trading data for japanese or mexicana or even british firms, for ejample ... the cdnx does have a refreshing trend in the right direction, but overall the US is more transparent, more clear.
2. while Whipsaw is right, many traders make fantastic numbers of trades and scrupulously avoid any DD that might interfere with their pure-TA approach, i believe that more trades overall are done by position traders, there are simply many more of us [imho, who knows really] .... i consider myself an infrequent position trader, tweaking here and there a few times a week, busier in some months like Dec-Mar and July-Sept but overall low volume - still, Greenline got over twenty thousand canadian out of me last year, at twenty-nine minimum a pop ... and i have other accounts [one of them 'full service', i.e. high-price, so not many trades there, lol]
So i see the advantages of DAS being these -
1. quick recognition, high visibility
2. opening up US markets to low bandwidth locales - first time ever
3. a nice rounding out of the SEG package, adding to the local exchange capabilities ... the DAS will bring eyeballs to focus on those local exchanges ... a lot of people, myself included, watch the activities of 'daytraders' but restrict our own activities pretty much to position trading/investing, contented bagholding at as high a level of awareness as possible ... so, each side of SEG will promote the other, imho.
Biggest revenue stream potential to SEG would be maybe a loonie or so per trade, i should think - get the system rolling efficiently to where you can drive serious volume through it, and you're talking serious money. |
