Optionable Announces Growth Initiatives
Thursday March 15, 4:05 pm ET
New Clients on OPEX(R)
VALHALLA, N.Y., March 15 /PRNewswire-FirstCall/ -- Optionable Inc (OTC Bulletin Board: OPBL - News), a leading provider of natural gas and other energy derivatives brokerage services, announced today that it has purchased two NYMEX trading rights, also called membership seats, for approximately $1.2 million through one of its subsidiaries, OPEX International, Inc. Optionable Chief Executive Officer Kevin Cassidy also noted that the Company has signed several new clients, is exploring strategic floor brokerage relationships as well as market maker incentive programs for market making firms in the energy sector.
"The purchase of these trading rights is part of an overall strategy to expand our NYMEX floor operations as well as expand our product line both on the exchange and OTC," Cassidy said. "We believe this is a wise decision at this point because the cost savings over leasing the trading right will be substantial. Also, and very importantly, we will no longer be subject to increasing lease rate changes."
The Company also said that it has signed participation agreements with 30 new users for its OPEX® trading platform since the beginning of the year, all with blue-chip clients, and that requests for the use of the software are increasing. OTC-cleared trades that are executed are cleared through the award-winning NYMEX Clearport®.
Cassidy said the strategic relationships the Company is exploring are with other OTC and floor brokerage companies.
Cassidy commented, "We will evaluate possible relationships with other OTC and floor brokers and determine what forms of strategic alliances make sense going forward. We would also evaluate and consider possible acquisition targets if they were the right fit for our growth strategy."
On the issue of market maker incentive programs, Cassidy added, "The Company and its management has not directly, or indirectly, provided compensation to its clients or their employees in the past but it will implement market maker strategies and programs which have been successful for other industry electronic platforms and exchanges. When properly and ethically administered, these programs can fuel a company's growth."
About Optionable
Optionable, Inc. is a leading provider of natural gas and other energy derivatives trading and brokerage services, headquartered in Valhalla, NY. The company provides its services to brokerage firms, financial institutions, energy traders and hedge funds nationwide. In addition to the traditional voice brokerage business, Optionable developed an automated derivatives trading platform. OPEX® is a real-time electronic trade matching and brokerage system designed to improve liquidity and transparency in the energy derivatives market. For more information about Optionable and OPEX please visit www.optionable.com.
Safe Harbor Statement
This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with market acceptance of OPEX, our ability to retain key employees, reliance of strategic relationships, intense and increasing competition, concentration of services revenues related to natural gas derivatives, increased governmental regulations as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. Optionable assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
Contact Information:
Rudy Barrio (investors)
Allen & Caron Inc
Tel: 212 691 8087
Email: r.barrio@allencaron.com
or
Brian Kennedy (media)
Allen & Caron Inc
Tel: 212 691 8087
Email: brian@allencaron.com
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Source: Optionable Inc. |
