Frequently Asked Questions (FAQs)
Questions:
- What is Flett Exchange?
- Will our customers go directly to Flett Exchange?
- How is Flett Exchange different from online OTC exchanges?
- Will Flett Exchange act as an OTC broker?
- Why would our customers want to place their own orders?
- How many brokers are members?
- Why should I join Flett Exchange?
What is Flett Exchange?
FE is an electronic platform where OTC brokers can place orders and access liquidity and customers can view the marketplace and place their own orders.
Will our customers go directly to Flett Exchange?
Customers will designate an OTC broker to place orders through and all orders placed by those customers will be represented by the broker. At no time will a customer be allowed to place orders without designating a broker.
How is Flett Exchange different from online OTC exchanges?
In contrast to other exchanges, we are not trying to circumvent the OTC brokers. Rather, we have created a tool for the broker to create and access a pool of liquidity. In addition, brokers provide a value for their customer by providing a means to access markets and quotes from one centralized source.
Will Flett Exchange act as an OTC broker?
No, Flett exchange will not represent customers directly. Those relationships are maintained by their respective OTC brokers.
Why would our customers want to place their own orders?
Customers want to have control of their own orders and want to have a live environment in which to view the marketplace. This is evidenced by the recent explosion in volume of online trading platforms. This is the natural transition which is inevitable.
How many brokers are members?
Membership will be limited to the first 25 members. Only member brokers and their customers will be able to place orders on the exchange. As volume and liquidity increases, the value of these memberships can exceed the revenue of some brokers.
Why should I join Flett Exchange?
Customers are demanding to gain greater control of their orders. Other exchanges are providing this through automation. However, they are missing one key element, the broker. We believe that the broker still plays a very important role in facilitating deals. However, by doing nothing they allow others the ability to gain market share and traction. By joining the exchange, you will retain full control of your clients, while allowing them the ability to trade the way they are telling us they want to trade.