MidasTrade.com, Inc. (OTCBB: MIDS)
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Symbol: OTCBB: MIDS
Address:
MidasTrade.com, Inc.
6281 Beach Boulevard
Suite 145
Buena Park, CA 90621
www.midastrade.com
Top Investment Highlights
- The first company to provide a direct link between Korean investors and US securities markets using its own GDAN platform.
- Client base in Korea consists of top brokerage firms in the country, including Good Morning Shinhan Securities, Woori Investment, KEB Futures, and Shadow Traders.
- The company provides a range of services including direct access trading of US equities and broker/dealer execution services via two levels of trading platforms for both individual and semi-professional traders.
- Private label trading platforms for broker/dealers and institutions.
- The third generation of its proprietary software trading platform is the GDAN 3.0, which allows Korean traders and investors the ability to trade US securities and access data feeds and futures and options in real time.
- MidasTrade's GDAN, paired with the Korea Securities Computer Corporation ("KOSCOM"), allows US ECN brokerage firms and financial institutions direct access execution of Korean securities and futures and options for the first time.
- The company also provides US futures and options for Korean investors and institutes and now allows US investors direct access into the Korean Securities futures and options market.
Corporate Overview
MidasTrade.com, Inc. is a US-based company committed to providing foreign investors, traders, and institutions direct electronic access to US securities markets with minimal surcharges and commission fees. Through the MidasTrade network, the company has developed the Global Direct Access Network (GDAN), a proprietary software trading platform, which allows investors to trade securities, options, and futures in real time via its online trading account.
Through MidasTrade's GDAN, investors access securities quotes and data in real time from their computer and receive direct execution of these transactions through their existing online trading account. With GDAN, foreign investors and traders can now trade American stocks faster, cheaper, and more efficiently than ever before.
Strategic Relationships
The company has a relationship with the Korea Securities Depository (KSD), the sole provider of custodial and depository services for all securities transactions in Korea. The purpose of this relationship is to launch the American Home Trading System which is KSD's electronic direct access trading system for US securities that are used by Korean brokerage firms and institutions and their customers. MidasTrade provides the technical background, quotes, data, and executions for the American Home Trading System through GDAN. KSD and MidasTrade launched the American Home Trading System in order to satisfy the Korean's demand for US market accessibility. Currently, several top brokerage firms in the US consist of Midas Securities client base, which includes Good Morning Shinhan Securities, Woori Investment and Securities (formerly LG Investment and Securities), LG Futures, and KEB Futures.
MidasTrade has recently expanded its relationship with KSD to help build a one-stop solution for the trading of Korean equities by international investors. The goal of this centralized system is to simplify the process and costs associated with Korean securities trading by further opening Korean markets to the international marketplace.
Through Korea Securities Computer Corporation's "KOSCOM,"—the exclusive provider of all stock market information as well as service bureaus, home trading, and back office services for the Korean Stock Exchange—MidasTrade provides direct access execution of securities, futures, and options for US ECNs, brokerage firms, and financial institutions. This allows MidasTrade's GDAN to provide both incoming and outgoing orders between Korea and the US. In addition, MidasTrade and KOSCOM allow KOSCOM's 13 firms to trade US securities through GDAN, adding these brokerage firms to its expansive client roster.
On June 4th, the company announced that its subsidiary company, Midas Securities, has entered into an agreement with Woori Futures, one of the premier financial institutions in Korea. The company is working along with Woori to connect with Patsystems, a global supplier of trading, risk, and exchange technology systems to provide direct access to institutions that trade full futures and commodities from Korea. MidasTrade provides execution and clearing as well as back office systems, while Patsystems supplies access to futures exchanges and trading tools that will be customized for trading through MidasTrade's GDAN and its Tradepro product.
The company recently partnered with KOSPI, which begins its direct market access (DMA) of KOSPI and KRX from the US. This will allow its customers access to KOSPI futures and options through its GDAN system. Negotiations are being made with several system/algorithm trading firms to host their trades on its platform. One of these firms is in the final stage of transferring to the new system. The company is also in negotiations to provide DMA service for Institutional Trading. The company plans to provide executive, clearing, and settlement services to their customers for US and global equities, options, futures, and commodities markets.
In April, the company signed an agreement to provide KOSPI for Pure Reason, LLC/ShadowTraders. This Subscriber Agreement will provide DMA to the KOSPI options and futures trading via Midas' GDAN software. Pure Reason is Midas' first client to go live with the GDAN and marks the beginning of two-way traffic for global trading between the US and Korean markets.
Products and Services
Originally launched in 2002, GDAN 3.0 is an updated version of the GDAN that features fully translated screen tabs, comprehensive charts, and drop down menus and directories, as well as real-time data feeds. With its light footprint, this version of the GDAN is more dynamic than its predecessors and can be seamlessly interwoven into a firm's system.
Aggressively promoted in the US, Tradepro 11 is the newest version of TradePro that supports multiple screens and offers various levels of data, news, real-time trading, and account management as well as direct access to the NYSE, NASDAQ, AMEX, OTC Bulletin Board, and Pink Sheet Securities.
The company offers an array of reporting options that include customized reports and data extractions, direct access to US equities trading, broker dealer "execution" services for independent contractors, and brokerage services for institutions. In addition, there are personalized services for each prime brokerage account and MidasTrade's the only brokerage firm whose primary business strategy is developing a network for direct-access traders and broker-to-broker relationships.
The Global Market
MidasTrade is the first company to provide a direct link between Korean investors and US Securities. This first-to-market advantage gives it a 12-month start over its nearest competitors in the Asian market. The online trading market is massive in Korea. With over 50% of all trades completed online, the country boasts more than 4.8 million online accounts with an estimated 730,000 active daily traders.
Pursuant to the deal with KOSCOM, MidasTrade is truly a two-way trading highway between Korea and the US. MidasTrade plans to aggressively expand into operations to Taiwan, Canada, China, parts of Europe, and elsewhere.
In 2007, Midastrade is the only company offering Direct Market Access to the KOSPI from the US. The number of Kospi 200 stock index futures and options—far and away the world's most actively traded derivatives contracts—that changed hands in the first half of 2007 reached over 1.12 billion.
In the first half of 2007, according to estimates by the Bank for International Settlements, the turnover in the Kospi futures and options reached over $7 trillion. That compares to $29 trillion for all equity index contracts worldwide.
Recent News
In July 2007, GoodMorning Shinhan Securities formed a marketing department to promote US and global stock trading with its customers through MidasTrade's GDAN. A 30% increase in US global securities trading has been seen since its addition. Through a planned seven city promotional presentation tour, the company expects to double its US trading account from 2,000 to 4,000 accounts by the end of the year.
Announced in April 2007, the company has completed implementation of the KOSPI system network to offer futures and commodities market data from North American and global markets. The company will offer KOSPI quotes and order management services to developers in the US. Other provisions will include access to the KOSPI market after implementation and will host its trading system for global trading firms as its data center in Seoul, Korea. Companies will be able to access the KOSPI market instantly while still obeying by Korea's Financial Supervisory Service regulations.
Management
Jay Lee, President and Chief Executive Officer
Robert Wilson, Chief Financial Officer
Peter Lee, Vice President of Operations
This corporate profile is based upon information provided by management of MidasTrade.com, Inc.. The information is not intended to be and shall not constitute, an offer to sell or solicitation of any offer to buy any security. It is intended for information only and to increase awareness of MidasTrade.com, Inc. services. Safe Harbor Statement: The statements in this document relating to future product availability, collaboration and partnership and positive direction are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the aspects anticipated by these forward-looking statements may not, in fact, occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties, demand for MidasTrade.com, Inc. products, the future market price of MidasTrade.com, Inc. common stock and the Company's ability to obtain necessary future financing. EQUITIES Magazine was paid $3,500 by MidasTrade.com, Inc. to write and print this profile. Before investing in any security, you are strongly advised to review all public filings of the issuer of such security, which can be found at www.sec.gov, as well as the warnings published by the Securities and Exchange Commission at http://www.sec.gov/investor.shtml.