Yet another low cost brokerage firm has entered the market. Actually, they\’ve been in the market for a number of years, and the word is just now getting out.
ex24 is another player in the discount brokerage game, and like others in the same business, offer low commission trades for stock traders. Naturally, there are a few things that set ex24 apart from their competition, as well as a few areas left for development.
The ATS Order Book is a feature I’ve not seen anywhere else. Effectively, the ex24 platform hosts its own sub-market if you will, allowing account holders to trade stocks between each other around the clock. It’s kind of a neat idea.
ex24 does clear their own trades, which eliminates the middleman, and hence some pass through costs to customers.
I had an opportunity to ask Chief Operating Officer, Anthony Link, a few questions about ex24:
1. Tell me a little history behind ex24 and the parent company, bidnask.
The initial idea was to create an electronic stock exchange where participants could trade directly between one another similar to what ebay does now for all other items. In pursuing this idea and working with regulators, it was decided that we would build an Alternative Trading System (ATS) as defined by SEC Regulation ATS. From there, efforts set forth to build the ex24 ATS and to form ex24, Inc. as a self-clearing broker/dealer. Today the ex24 ATS (ex24 Order Books), provides 24/7, Member to Member trading and instantaneous settlements.
This fall ex24 unveiled its US Markets Trading platform. The ex24 US Markets Trading platform provides Members with additional avenues for order entry. Members can enter traditional share based orders or real-time dollar-based orders. Trades conducted on the ex24 U.S. Markets Trading platform are routed to outside market centers and have traditional T+3 settlement.
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