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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Joss who wrote (24375)	9/1/1999 12:23:00 PM
From: j.o.	Read Replies (1) \| Respond to of 99985

OT* Hi Steve - I just noticed your post, and thought that I might address it directly, if I may. First of all thanks to Gersh for the kind words. I am one of the founders of indextrade.com . Although we can't (until we move from private equity ownership to public) release our financials, I can perhaps explain why IndexTrade is presently domiciled in Antigua, and how we protect investors funds. I, along with the other founders, have built a career in derivatives trading. I traded bond options for 5 years as a bank-employed market maker in Germany, France and the UK, spending time on the floor and on trading desks. Some time after I left full-time trading, I decided to create a new type of dynamic trading vehicle - that goal has become IndexTrade. Since the dynamics of this form of trading are so new, there is not adequate regulation in many key markets like US, Germany, and Japan. In order to avoid regulatory uncertainty and guarantee that we can continue to offer our service worldwide, we have chosen an offshore domicile. Our intent is to work with regulators in key markets to sufficiently regulate this new form of trading, so that we can bring it onshore in the US. We believe that this is the future of trading, and are doing our best bring it onshore in order to realize that goal. The insurance for customers that the market does not go "against the house" is both our solid equity base and the fact that we are not running an unhedged book. The collective Investment Banking and derivatives trading experience of the founders have been brought to bear to ensure that we keep our risk hedged - with full internal risk updates and hedge adjustments every few seconds. As some of our investors, traders with investment banks themselves, say - even most banks do not have such a complete trading system in place. As you suggest, we do face a challenge in proving ourselves in this market - and we can only rely on our own performance and the professionalism of our site and service in order to do so. I hope that you will give us a try. Regarding legal recourse, our license to operate is subject to maintaining customer satisfaction. Any complaints or problems with our site can be addressed to the Director responsible for our license at director@antiguagaming.com. They ensure that our operations are fairly run and have sufficient capital to carry on our business. Kind regards, j.o. indextrade.com

To: Joss who wrote (24375)	9/1/1999 1:35:00 PM
From: Gersh Avery	Respond to of 99985

Hi Joss, OK .. several questions in one .. 1. Capital backing .. I don't know. 2. Insurance .. I don't know. 3. legal recourse .. I don't know. 4. How practical are they because they are in Antigua That one I can give a couple of answers to. As far as speed and ease of execution they may as well be in NY or Chicago. Electronic commerce is a wonderful thing. The one problem with the location that I can see is that you have to keep track of all of your trades for your taxes. They will not provide that information to the IRS for you.<g> 5. Do I personally know anything about the company other than what is on their web site? Yes. I've been giving their site a beating for the last month. I've been trying to get a good "feel" for how their system works and responds. The system takes a little getting used to. Because of that, I'm glad that I used the available play account before jumping in with real money. During the last month, I've made a lot of suggestions to them. Some of which they implemented and some not. One suggestion that I made was to turn the marketing of the site into a multi level plan. They refused. In my book, that raised the integrity level of the outfit massively. To me, it looks like they intend to be there for the long run. I've done some additional digging, and everything looks good to me. What digging that was I'm going to keep to myself. Now .. for all of those questions that I responded "I don't know" to I'm going to point j.o. at them and see what he says. One item about international recourses .. it does seem to me that it would have to be worth the effort .. I wonder what level of effort would be harder .. recourse against a Wall Street firm or these folks. FWIW Gersh