I don't think I get your point regarding the 70 Million. I think they are just saying they now have the capacity to do 70 million shares, absent two natural parties to a trade. Of course where there are two parties (buyer & seller) they can do as many shares as the two parties want provided they each wanted to trade the same amount of shares. I thought they said in a webcast a while back that by July the system would have 50,000 to 100,000 shares per stock available to help with inbalances between buyers and sellers. It sounds like they may be a little deeper than that level. (btw, this would appear to be a timeline they met:-))
I would assume when they have to tap into the pool of 70 million shares to make a match, it comes with a fee. However, absent it, the shares from the natural party wanting to trade would be returned back to them. The current commission on these returned shares is zero. Therefore, when ATG starts to generate revenue on these otherwise unmatched shares by matching them with shares from the liquidity pool, they will probably have to split the revenue with the source of the liquidity.
I kinda of view this as infrastructure, but I think it is a very significant development on a couple of fronts. Since I have been following this stock, it has seemed to me that the trading world has been somewhat hostile to this VWAP trading system. I don't know who the liquidity providers are, but the fact that ATG has entered into arrangements with some entities to provide liquidity signals that the eVWAP trading system has now obtained some level of acceptance. Perhaps now even some parties who may have even opposed it now have an economic interest in it to do well. Second, if liquidity is like "liquid gold" than having the capacity to guarantee a fill is a wonderful thing, and no doubt reflects what the company has been working on these past many months.
Of course we don't have much information on the guarantee program yet.....
Regarding the two month payment delay, wouldn't this be recorded as an account receivable. If the eVWAP volume picks up, I would think this would help them find financing that is more shareholder friendly, especially if it becomes apparent this will only be a bridge loan. |
