| To: TFF who wrote (8744) | 2/14/2001 8:50:41 AM | | From: TFF | | | | Ameritrade to Add Direct Access With Acquisition of Tradecast
Company enhances execution options for retail and institutional customers Expands distribution in B2B marketplace
OMAHA, Neb.--(BUSINESS WIRE)--Feb. 14, 2001-- Ameritrade Holding Corporation (Nasdaq: AMTD - news), one of the brokerage industry's technology leaders, today announced a definitive agreement to acquire TradeCast® Ltd., which, through its subsidiaries, is a leading provider of direct access trade execution and software designed for the active trader. The advanced trading capabilities of TradeCast leveraged with Ameritrade's operational efficiencies and technology engine will provide customers superior order management and decision support tools.
The combined competencies of Ameritrade and TradeCast add significant strategic elements for both companies to expand their presence in the business-to-business marketplace. TradeCast's broker/dealer customer base consists of approximately 60 broker/dealer, hedge fund and money management customers, complementing Ameritrade's existing institutional offerings through OnMoney Financial Services Corporation, AmeriVest, Inc., Ameritrade Institutional Services, Inc. and Advanced Clearing, Inc.
``Our acquisition of TradeCast represents an important strategic entry for Ameritrade into the professional trading market,'' said Jim Ditmore, chief information officer of Ameritrade Holding Corporation. ``TradeCast's relationships and market reach with broker/dealer customers perfectly complement the B2B elements of Ameritrade's strategy. By bringing together TradeCast's capabilities with our trading engine, we will offer one of the industry's best suites of technology and execution for broker/dealers who serve highly active traders.''
``TradeCast is a pioneer in direct access software, advanced trading tools and customer service, while Ameritrade offers a 25-year heritage of delivering speed, value and customer experience to self-directed investors,'' said Bobby Earthman, president and co-founder of TradeCast Ltd. ``We plan to strengthen our foothold among active traders and our broker/dealer, hedge fund and money management customers by leveraging the technology of our combined companies to meet the needs of our customers and stay ahead of our competition.''
The Transaction
The acquisition is structured as a stock transaction in which 7.5 million shares of Ameritrade stock will be exchanged for all of the outstanding ownership interest of TradeCast, with the potential to receive up to an additional 750,000 shares based upon future performance. Ameritrade expects the transaction to close in 30 to 60 days, after customary approvals are obtained from the regulatory authorities. Upon completion of the transaction, TradeCast, based in Houston, Texas, will operate as a subsidiary of Ameritrade Holding Corporation. As part of the transaction, Ameritrade intends to retain TradeCast's approximately 90 employees.
Market Growth
The management of both companies anticipate strong market share growth among active and professional investors due to recent and pending market developments such as decimalization, disclosure requirements for trade executions and SuperSoes. Ameritrade expects the acquisition of TradeCast to have an accretive impact on the Company's earnings per share for its fiscal year ending September 28, 2001. Ameritrade will update its current projections to reflect the Company's main business drivers in the Investor Relations ``Outlook'' section of its corporate website located at www.amtd.com after the acquisition is completed.
A comprehensive broker/dealer offering and integrated direct access/active and professional investor platform is scheduled to launch Spring 2001.
TradeCast Tools & Features
Ameritrade will integrate certain parts of its systems with TradeCast's platform to benefit Ameritrade and TradeCast's growing base of broker/dealer business partners and active and professional investors. Ameritrade's tools include the advanced analysis features that comprise the BigEasy Investor client software and website. The BigEasy Investor package includes strong technical and fundamental analysis tools that provide decision support to the active investor.
TradeCast's advanced decision support tools include:
-- direct access execution to NASDAQ, all major ECN's and
NYSE/AMEX with the ability to route to multiple destinations
simultaneously;
-- smart order routing;
-- rapid trade execution;
-- level II quotes;
-- real-time charting, news, streaming quotes and watchlists;
-- real-time confirmations and updating of positions, balances
and buying power;
-- price and trading alerts;
-- real-time account and risk management.
``The combination of Ameritrade and TradeCast's technologies creates the industry's elite platform for active and professional investors,'' said Ditmore. ``TradeCast's advanced trading platform adds an important element to Ameritrade's offerings to retail and institutional investors. By applying this unique blend of technology and execution platforms, both companies will attract new customers and enhance the experience of existing customers.''
About TradeCast
TradeCast (www.tradecast.com) pioneered direct-access online stock trading. The Houston-based company developed the first ``point-and-click'' trading software enabling individual equity traders to trade stocks online and was the first company to tie directly into the NASDAQ SOES mainframe computer in a Windows® format. TradeCast's software allows traders to ``Go Direct(TM)'' by executing trades through TradeCast Securities, Ltd., a licensed broker/dealer, member NASD/SIPC.
About Ameritrade Holding Corporation (Nasdaq: AMTD - news)
Ameritrade Holding Corporation (www.amtd.com) is a pioneer in the online brokerage industry with a 25-year history of providing customers a self-directed approach to brokerage services. The award-winning Company, through its broker/dealer subsidiaries, provides brokerage and clearing services to self-directed individual consumer investors and to financial institutions. |
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| To: TFF who wrote (8746) | 2/14/2001 8:12:25 PM | | From: Eric P | | | | Interesting chart, nice find.
I was surprised to see the peak SI activity was well before the market peak in early 2000. Anyone have thoughts on the causes of the decline that started in early 1999? Did other message boards pick up around this time, or was there an SI bungle that may explain this
-Eric |
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| To: TFF who wrote (8749) | 2/15/2001 12:03:12 AM | | From: Jon Tara | | | | Oh, cool We can trade "weather" now. Heck, that beats Presidential Elections all to heck.
More seriously, is this practical for an individual trader? What kind of capital does it take to trade these contracts? (And is it even possible?)
One of the really annoying things about the California energy situation is that they set-up a rigged market. You had to be either a producer or a consumer to trade electrnicity at CAL-PX. There was no opportunity for speculators to enter the market. I suppose they must have somehow thought that by limiting participation to producers and consumers that they were somehow "protecting" the public from manipulation. I think that, in fact, this structure INVITED manipulation, and had speculators been allowed into the market, we would never have had the disasterous results that ensued.
BTW, just read an article (Economist? Not sure where I saw it) claiming that California actually has MORE reserve generating capacity than most other states. Yes, we haven't been building new plants, but we had so much excess capacity that we didn't need to. The article said that it's all been basically a put-up, with plants being taken off-line to create an artificial shortage. |
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| To: Jon Tara who wrote (8750) | 2/15/2001 12:18:54 AM | | From: LPS5 | | | | I met with someone a few months back who explained to me that, for the retail end of the market, weather contracts could be used to hedge against the risk of financial loss to holders of an outdoor wedding - for example - in the event of rain (which might lead to losing deposits, damage to rented tuxes, etc). Or, for those in those "big square states" out west, losses due to tornados and such could be hedged against...to some extent.
I wonder what the insurance/reinsurance industries will do to address the potent threat that such contracts present (if indeed they prove threatening). Possibly issue their own contracts or address the new market with OTC weather derivatives along the lines of swaps, etc.?
LPS5 |
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| To: Jon Tara who wrote (8750) | 2/15/2001 8:44:29 AM | | From: TFF | | | | Futures have amazingly low performance bond rates. But more importantly the quick pace of change is making futures far more attract than stocks for short term trading. Some things happening include:
Demutualization of futures exchanges
creation of electronic markets (globex, a/c/e, etc)
Proliferation of direct access platforms(ISVs')
Simplified execution.
High volume/highly volatile contracts.
rapidly falling commission rates
creation of many new contracts such as individual stocks, stock sectors, indices, etc.
Should make for interesting times ahead. |
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| To: Jon Tara who wrote (8753) | 2/15/2001 1:23:26 PM | | From: TFF | | | | LOL . No performance bond rates are the semi-equivalent to margin on stocks: Here are the requirements for the CME for example:
CME Performance Bond Rates
cme.com |
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