THE CONCEPT PRESENTATION
The project Transparency Exchange is the main task or product to be implemented by a company. Beside the intensive work on the computer application to provide more data transparency and informed decisions, the spirit of the company lies in connecting profit margins with community based project. Our success is not measured in higher profit margins done every year, but the number of smiles and better life opportunities that we provided for the community that we operate in. In addition, the company's moral is to monitor the market and detect loopholes to notify regulators for an increasing regulative framework on a specific side of the trading process. As machines are doing most of the work, there should also be algorithms to monitor the machines in order to prevent market manipulation and keep stability in the financing of operations.
Also, our goal is to protect markets (regulated, OTC or virtual currency based) from allowing financing of illegal activities, money laundering, terrorism, or any other form of the gray economy and criminal conduct.
Beside providing informed decisions to our customers, we want to raise a campaign in providing ethics and morals before hiring immoral individuals to hold positions of great power and great responsibility.
The idea is to provide information to the investors in the most user friendly and secure manner on the new generation of technology.
The Company is at the forefront of the new generation of technology and wants to established a strong market position in its local community and a rapidly growing presence in the international market.
Also, our goal is to protect markets (regulated, OTC or virtual currency based) from allowing financing of illegal activities, money laundering, terrorism, or any other form of the gray economy and criminal conduct.
Beside providing informed decisions to our customers, we want to raise a campaign in providing ethics and morals before hiring immoral individuals to hold positions of great power and great responsibility.
The idea is to provide information to the investors in the most user friendly and secure manner on the new generation of technology.
The Company is at the forefront of the new generation of technology and wants to established a strong market position in its local community and a rapidly growing presence in the international market.
The Opportunity
Being blessed in having the opportunity to work in the banking and insurance companies made me realize the need of quality information on one side and the need of morality and ethics on the other.
Instead of being profit oriented, the consulting part of quality information can enable the financial sector to operate on savings that are later directed to community based project and helping the ones in need.
Instead of being profit oriented, the consulting part of quality information can enable the financial sector to operate on savings that are later directed to community based project and helping the ones in need.
The Market
The market for the exchange rate product is global. Each country is explicitly tight to the foreign exchange, especially countries in the development process holding their own currency reserves, being tight to favorable exchange rates to achieve savings or profit based on proper rate speculation. With this application, we will focus mostly in dispersion of proper information, providing users with the most accurate information for making informed decisions.
The application is still in the early phase of its development and realization. Extensive research has been done in order to provide the proper protocol of the development and execution.
To obtain a general idea of the size of the market, the aim is to extract and analyze instruments that will provide the best indicator in the realm of high volume turnover contracts. The tables below show only the volume turnover of the outstanding contracts on organized exchanges that are spread over the world. As noted in Kleist, The Bank for International Settlements accumulates data from specialized market data providers that cover more than 80 derivatives market exchanges spread around the world. The goal is to place the analyzing algorithm as close to data sources as possible in order to obtain must crude and up to date information to be delivered to our clients. The graph below show yearly summary taken in December on interest rate and currency amounts turnover (in billions of $) and number of contracts (in millions).
The application is still in the early phase of its development and realization. Extensive research has been done in order to provide the proper protocol of the development and execution.
To obtain a general idea of the size of the market, the aim is to extract and analyze instruments that will provide the best indicator in the realm of high volume turnover contracts. The tables below show only the volume turnover of the outstanding contracts on organized exchanges that are spread over the world. As noted in Kleist, The Bank for International Settlements accumulates data from specialized market data providers that cover more than 80 derivatives market exchanges spread around the world. The goal is to place the analyzing algorithm as close to data sources as possible in order to obtain must crude and up to date information to be delivered to our clients. The graph below show yearly summary taken in December on interest rate and currency amounts turnover (in billions of $) and number of contracts (in millions).
As noted from the graphs, the interest rate futures market on organized exchanges is significantly bigger than the currency market. Our goal will be to provide the proper information to the customer and to find a significant link between the interest rate and the settlement of the currency to decrease losses and optimize currency holdings in a company based on the portfolio structure. Beside the futures market it is out interest to present the options market of the same type (currency and interest rate). As expected, the options market has about twice the volume turnover than the futures market, however, the same does not hold true within the currency market where options market is slightly smaller than the futures market.
ooking at the detail distribution of number of contracts and volume turnover of outstanding contracts spread across continents, we notice that roughly 99% of the interest rate volume is tight to the US and European market, only 1% falls to the rest of the world (only taking into consideration organized exchanges). In addition, when looking at the development of the series, the trend slightly changed over the past years and market share on interest rates between the US and Europe is almost at pair, with Europe obtaining more that 50% when the last statistic was published in December 2013 (in 200, US had a 68% share)1.
Similar observation was also done on the currency market between the continents. In this case it would be pertinent to observe the development of the currency market between the continents since the trend is significantly different that in the case of the organized interest rate market. In this setting, Europe does not hold at all a significant share. Latest trends may change since in October Eurex launched the T7 program where they also included currency trading, which should change the trend in the following years. The graph below shows the development of the market share between the continents (North America and other continents). The impact of the T7 launch from Eurex has already had a significant impact of the global trading volume share as noted on the graphical representation below. The December 2013 data does not sum up to 100% (the gap is due to impact described above).
1 Graphical representation would not add to understanding of the volume turnover spread in this case. In addition, data was again obtained from BIS (The Bank for International Settlements).
Similar observation was also done on the currency market between the continents. In this case it would be pertinent to observe the development of the currency market between the continents since the trend is significantly different that in the case of the organized interest rate market. In this setting, Europe does not hold at all a significant share. Latest trends may change since in October Eurex launched the T7 program where they also included currency trading, which should change the trend in the following years. The graph below shows the development of the market share between the continents (North America and other continents). The impact of the T7 launch from Eurex has already had a significant impact of the global trading volume share as noted on the graphical representation below. The December 2013 data does not sum up to 100% (the gap is due to impact described above).
1 Graphical representation would not add to understanding of the volume turnover spread in this case. In addition, data was again obtained from BIS (The Bank for International Settlements).
Differentiation
What makes us different from the competitors is our philosophy and the global use of the application. Not every person is fortunate and not every person or competitors understands the notion of fair play. We believe in strong morals and hard work of our staff and put health and well-being before profit. In addition, we are interested in people that have a hobby outside of work, so we can support them in their endeavors. Good worker is a happy worker.
The product or information service provider will be designed based on the need of our clients to achieve savings and diminish their foreign exchange risk. Our goal is to provide information so the money portfolio of the costumer would be optimized to benefit the most out of the FX situation at any state of the market.
Once the product is finished it will be subject to copyright and patents, especially the methodology that will be implemented to provide customers with informed decisions to diminish losses based on foreign and interest rate risk. The product can only be as fast as the information and computational power allows. We cannot exclude delay due to non-convergence of the algorithms or down speed with computational power or anything that can go wrong between the data computation and delivery.
The product or information service provider will be designed based on the need of our clients to achieve savings and diminish their foreign exchange risk. Our goal is to provide information so the money portfolio of the costumer would be optimized to benefit the most out of the FX situation at any state of the market.
Once the product is finished it will be subject to copyright and patents, especially the methodology that will be implemented to provide customers with informed decisions to diminish losses based on foreign and interest rate risk. The product can only be as fast as the information and computational power allows. We cannot exclude delay due to non-convergence of the algorithms or down speed with computational power or anything that can go wrong between the data computation and delivery.
Organizational Chart
As in the future if I would ever found some funding opportunities for my work or people that would like to cooperate with me, we would have a different approach in conducting customer care business. I do not believe in hierarchical organization (most of the times it is needed), but a conceptual understanding of the round table. There shall be a president or a person responsible for the financial side since it is required by the law, but I believe in the tasks and decision oriented workplace. The decisions of investment would always be done in the democratical setting where everyone is informed and each of us always has equal opportunity. Therefore, the company, would be centered on an organizer of activities (who knows and partakes in each task as needed), programmers, researchers, legal/language advisors and a customer care team. Each person would have an opportunity to partake in any of the enlisted activities. Awards and motivations would always be designed around an individual wishes and aspirations to achieve his or her best in the given situation.