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The Market
To understand the GlobeMerc market, it's important to understand the logic that has led us here.
| Pattern Recognition, knowing what's next. | |
| The universe is governed by natural law. Because of the universal nature of these laws, seemingly unrelated things will follow the same rules and patterns. Understanding this gives us the ability to forecast future events once we have seen the results of similar conditions elsewhere. |
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The introduction of automation into the stock market created a market that could handle far more liquidity than a non-automated, floor based market. This also lowered trading costs and increased transparency. This combination of changes led to a substantial increase in market liquidity. This increase in liquidity led to a tremendous
amount of technical and market structure innovation.
Liquidity is increasing rapidly in the web-facing marketplace as it did in the early electronic Stock Markets. As this plays out in the web-market, the market structure changes and technical solutions will follow the same patterns. Our goal is to leverage our market experience and build the web market of the future. Not all web products should trade using this model. At the New York Stock Exchange (NYSE), the smallest 4000 securities account for only 2% of all trading volume, while the largest 500 securities represent over 60% of trading volume. So a very small number of products produce most of the total volume (and revenue). This new market is designed to trade the only most liquid products. Since the majority of transaction revenue comes from the more liquid products, using a more efficient model will increase revenue while reducing overhead. | |
| What is a 2-sided transparent market? | |
| Currently all of the web-facing markets have the structure of an on-line catalog. Buyers can see sellers in a catalog format. Sellers cannot see the buyers. Buyers can buy product from only one seller in a single transaction. If a buyer seeks to purchase a large quantity of product they must break their order into multiple transactions. When a seller has product to sell they can only book the product and hope that someone chooses them. | |
| In a transparent, 2-sided market, both buyers and sellers are displayed and accessible from the other side. Transactions can sweep across several customers and several prices. If a seller wishes to cross the spread and sell their product to resting buyers, they can do this with the click of a mouse. |
The New Look and Function
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