Keith,
In scrounging around, asking questions, reviewing releases, reviewing previous posts and the companies website etc.etc. I was able to come up with some answers to your questions that I believe are very accurate.
At the outset Keith I'd comment that you might be confusing SE Global and SE Global Trade. Be aware that they are two seperate concepts in that SE Global links up brokers only between different countries and exchanges and SE Global Trade is direct access (DAS) for investors around the world to link up with the NYSE and the Nasdaq.
Regarding your specific queries:
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Question:
I'm afraid that I am confused after monitoring the posts (Ok,lurking) here and on Stockhouse, concerning DAS Software. My understanding is that CPT will have the right to distribute (market) the software to the brokers and/or investors/individuals.
Ok, so the member brokers purchase this software. Am I right in assuming that CPT will get a percentage of the sale price.
Answer:
From last weeks press release:
SE Global is a provider of technology and financial resources for international investors which, when the participation of SE Global's current partners is fully implemented, will enable investors to trade equities online on stock exchanges around the globe through SE Global's alliance network of 23 brokerage firms, covering 22 stock exchanges spanning five continents.
They do not sell the software to the brokerage. Essentially revenue is generated by charging investors certain fees per trade.
Question:
Will they also get a percentage, albeit very small, of each transaction through the brokerage using the software?
Answer:
SE Global will pay the brokerage per trade for the brokerages customers that use the network. That gives the brokers motivation to get their clients to use the software.
Question:
Won't the brokerages' clients that have opened accounts also have to have this software on their computers?
Answer:
Yes. Anyone trading stocks (whether they be retail or broker) needs the software.
Question:
Will the brokerages, or CPT, charge for downloading this software, or for using it?
Answer:
SE Global will charge investors. But if investors make sufficient number of trades then there is no monthly fee.
Question:
How does CPT profit when they sell this software to individual investors?
Answer:
As previously mentioned Investors pay a monthly rate to be on the system, but if they make enough trades, then they are only charged the fee per trade.
Question:
Do they just make money on the sale itself, or on each transaction?
Answer:
Both, depending on the number of trades made.
I hope this helps Keith.
Regards
C |
