24x7 Trading

24x7 Peer to Peer Trading Continuous Cash T+0 Settlement

Consolidating the exchange, broker clearing house functions at one location and on one electronic platform, the “Integrated Exchange” is one of two innovations that makes both continuous 24 hour trading and T+0 settlement possible. The Integrated Exchange software was designed specifically for 24 hour trading and T+0 settlement. The Integrated Exchange is more efficient because it eliminates duplicate and overlapping functions of the traditional and separate exchange, broker clearing house interactions. Examples of the efficiency of the Integrated Exchange are:

  • SBX has only one accounting system instead of three with overlapping information. As member-clients, both corporate and individual investors can trade peer to peer directly with one another on the integrated exchange. 
  • At SBX, the retail investor deals directly with the exchange as a member-client. 
  • Quotes are delivered free directly to the member-clients rather than through third party resellers. 
  • Trade confirmation and affirmation are redundant and therefore are eliminated. 
  • T+0 settlement reduces credit risks. 

For the retail investor the efficient common platform for trading and settlement will result in reduced fees. Extended trading hours allows retail investors who are often busy during conventional exchange business hours to trade at their convenience. These investors have time before or after their workday and on weekends to manage their investments. Operating 24 x 7 allows investors to enter transactions and receive reports of executed orders rather than entering an order in the evening for a possible fill the next day which is how order entry presently works when the exchanges are closed. 

The integrated exchange is a new software application and business method that incorporates certain broker, exchange and clearing house functions into a single platform; it is not merely the separate functions of a broker, exchange and clearing house on the same platform. 

Trader-ID

Each member-client user of SBX may have a 80 character advertisement attached to each of their open orders for display in any trading market that the member-client has an order. Trader-ID allows individual investors to contact one another to arrange trades or discuss the size of an order. Trader-ID advertisements are free. 

Brokers may use Trader-ID to advertise their specialized service as shown in the trading market below.

A table with price and trade information for various items.

There are five different Trader-IDs and six orders in this typical view of a trading market. It is possible, for example, to view a 40 visible orders in any trading market. A member-client can double click on any order to activate an action-box in which the member-client can enter the order or edit any parameter before entering it. 

If a user wishes to remain anonymous, the exchange assigns Trader-ID such as Z117, K225 or N777. Also a user can choose an alias such as TRADER DAN to remain anonymous. 

Contacting other investors or brokers is essential to negotiate the terms of a prearranged cross prior to order entry and order execution. A prearranged cross has two hidden orders and consists of a Buy-prearranged and Sell-prearranged order each of which contains a negotiated ordercode to ensure the two orders are matched. ‘

Trader-ID is an efficient way for investors to contact one another during the after-hours trading of listed securities. Trader-ID is essential for arranging trades of thinly traded fungibles such as: 

  • Put Call options
  • unlisted securities
  • minor foreign currencies
  • foreign currency derivatives
  • Delayed Delivery securities (single stock futures)
  • listed securities
  • strip bonds & coupons
  • gold & silver coins & bullion
  • commodities
  • other fungibles & derivatives

Real Time 24 Hour Accounting System

 

A real time continuous 24 hour accounting system is the second of two innovations that make both continuous 24 hour trading and T+0 settlement possible. In contrast, most if not all exchanges, brokers and banks still use batch accounting systems that preclude operating an efficient 24 hour exchange. 

SBX has an accounting system that tracks both money and securities. The accounting system has an open ledger without sub ledgers. The accounting system presently offers two account currencies, US$ and Cdn$ and will offer more currencies to accommodate both foreign buyers and domestic buyers of foreign securities.