ISMagazine.com

Software Sensations

July, 1999

wpe3.gif (2479 bytes)REVOLUTION IN CURRENCY TRADING

TheFXMarketTŪ is a revolutionary Internet based on-line foreign exchange transaction system providing Traders and Dealers optimal market efficiency. This new system is a proprietary electronic transaction and price discovery process that acts as a transparent automatic Market Maker. For each currency pair traded, a dynamically updating FX Order BookTŪ is displayed on the computer monitor, allowing Traders to see both their orders and other outstanding orders. TheFXMarket system internally matches marketable orders and tracks and displays non-marketable limit/contingency orders in currency FX Order Books. It instantly executes pending orders as called in the price discovery process. All transactions are matched within the FX Order Book without human discretion. This creates price movement derived from a fully transparent and greatly improved market price discovery process. This revolution in market functionality provides the easiest, quickest, and most efficient, fair, and cost effective method to trade foreign currency.

TheFXMarket developed by Forex Digital Services, Inc. (www.ForexDigitalServices.com) is a forward-looking and enduring approach providing Traders with direct and equal market access, fairness and integrity. The natural evolution in markets is toward neutrality and efficiency in price discovery. Access, price transparency, fair business rules, and technological innovation equal better trading results for market participants. Price transparency is essential to the fundamental fairness, integrity and efficient performance of markets. TheFXMarket trading platform is fully transparent, robustly displaying the price discovery process and the full depth of the market, disclosing volume and executed trade data to Traders. The process is truly neutral in that there are no proprietary or principal internal trading processes programmed into trade execution. With this new transparency, Traders will find an astounding level of increased control of their business.

TheFXMarket system provides for narrower price spreads, allowing traders to trade inside the traditional Bid and Offer spread. Traders will receive the best of the best price on their orders as reflected in a real market.

TheFXMarket system does not discriminate arbitrarily against any Trader, giving each order placed by a Trader the highest level of exposure possible. Every order is given the best execution available, as the same underlying business rules are applied to all Traders. Instant executions of marketable orders and near instant reporting reduce old barriers and obstacles and give Traders a greater ability to control their own trading destiny. Traders can creatively work their own orders based on the extensive amount of order information available from the FX Order Book. This access and efficiency reduces real transaction costs and increases trading profits. Faster execution time also translates into more trading opportunities. TheFXMarket system efficiency, capacity and stable underlying business rules provide for extremely orderly markets. Orderly markets reduce market manipulation and fraud while empowering competition among Traders.

The on-line trading platform is browser based, using Microsoft Internet Explorer IE5, which allows for immediate installation, responsiveness, flexibility and consistently managed state-of-the-art technology. The trading platform/browser dynamically updates market data, the trading blotter and portfolio information in real-time using XML (Extensible Markup Language). The use of XML by Forex Digital Services, Inc. offers the prospect of creating a globally accepted and cross-platform way of managing and communicating foreign exchange transaction information. With the development of TheFXMarket, XML has the momentum to become the Forex international standard, creating a unifying universal communications layer. A simple point and click process creates each transaction. The system offers an array of order types including Limit, Stop, OCO, Market, If Done Single and If Done OCO. With marketable orders, Traders will experience round trip execution and confirmations that are nearly instantaneous.

Forex Digital Services, Inc. has built a specialized Foreign Exchange network around its new, feature rich TheFXMarket transaction systems. With built-in redundancy in its software and hardware, the transaction system is designed for optimal performance and unlimited capacity. An exciting new World Wide Web vertical portal (www.TheFXMarket.com) will support TheFXMarket system. This Forex specialty portal will supply information and educational programs helpful to all levels of Traders and is scheduled to be launched on July 30th.

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