Integrated Exchange with 24 hour trading & continuous cash T+0 settlement
Consolidating the exchange, broker & clearing house functions at one location and on one electronic platform, the “Integrated Exchange” is one of two innovations that makes both continuous 24 hour trading and T+0 settlement possible. The Integrated Exchange software was designed specifically for 24 hour trading and T+0 settlement. Also the Integrated Exchange is more efficient because it eliminates duplicate and overlapping functions of the traditional and separate exchange, broker & clearing house interactions. Examples of the efficiency of the Integrated Exchange are:
- eCrowdex has only one accounting system instead of three with overlapping information.
- As member-clients, both corporate and individual investors can deal directly with one another on the integrated exchange. At eCrowdex, the retail investor deals directly with the exchange as a member-client.
- Open Orders are stored at one location instead of two.
- Quotes are delivered directly to the member-clients rather than through third party resellers.
- Trade confirmation and affirmation are redundant and therefore are eliminated.
- T+0 settlement reduces credit risks.
For the retail investor the efficient common platform for trading and settlement will result in reduced fees. The 24 hour trading allows retail investors who are often busy during conventional exchange business hours to trade at their convenience. These investors have time before or after their workday and on weekends to manage their investments. Operating 24 x 7 allows investors to enter transactions and receive reports of executed orders at any time on their computer rather than entering an order in the evening for a possible fill the next day which is how order entry presently works when the exchanges are closed.
Real time 24 hour accounting system
A real time continuous 24 hour accounting system is the second of two innovations that make both continuous 24 hour trading and T+0 settlement possible. In contrast, most if not all exchanges, brokers and banks still use batch accounting systems that preclude operating an efficient 24 hour exchange.
eCrowdex has an accounting system that tracks both money and securities. The accounting system has an open ledger without sub ledgers. The accounting system presently offers two account currencies, US$ and Cdn$ and will offer more currencies to accommodate both foreign buyers and domestic buyers of foreign securities.