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DMac88
Caldari
Posted - 2010.05.06 13:56:00 - [1]
 

Hi all,
I am in the process of setting up an Eve online stock/securities exchange.
I plan to have a fully operational market active by July 1st 2010.

I am aware that similar institutions have and do exist however I envision this institution; the "MacIntyre Securities Exchange [MSX]" to be a simple and user friendly system.

In short,
An Eve-online corporation may wish to list their company in order to raise funds for themselves, however, some monitoring of the corp by the MSX and dividends paid to shareholders are required.
An eve player may wish to purchase a stake in a listed company. This stake is tradeable on an open market.

To gauge interest I have prepared a short form for those interested to complete. It will only take one minute of your time and will help in my mission to deliver an effective and efficient service to those interested; Linkage

Kind Regards,
Drew MacIntyre
MSX Director

Mr MacIntyre
Caldari
New Eden Venture Capital
Posted - 2010.05.06 14:01:00 - [2]
 

Just to confirm the above, this is my alt account and is presently the CEO of MSX in game.
Look us up! MacIntyre Securities Exchange. Corp ticker <misx>
Webpage: http://mesx.webs.com/

Estel Arador
Posted - 2010.05.06 15:09:00 - [3]
 

I've filled in the questionnaire, I hope it is useful to you.

One remark: The question "How often do you think you would use this service?" lacks the option "never", so I couldn't answer that.

Dzil
Caldari
Caldari Independent Navy Reserve
The Fourth District
Posted - 2010.05.06 15:41:00 - [4]
 

Originally by: Estel Arador
I've filled in the questionnaire, I hope it is useful to you.

One remark: The question "How often do you think you would use this service?" lacks the option "never", so I couldn't answer that.


Heh.

I would want to understand what security the investor, working through the exchange, has that you, as the broker, wouldn't just run off with the isk.

Not that that ever happens.

Athre
Minmatar
The Higher Standard
Posted - 2010.05.06 16:12:00 - [5]
 

Survey filled out. I would strongly suggest you seek out former stock exchange personnel to build off their experiences.

Ackaroth
Plundering Penguins
Anarchy.
Posted - 2010.05.06 18:30:00 - [6]
 

Originally by: Athre
Survey filled out. I would strongly suggest you seek out former stock exchange personnel to build off their experiences.


Solid advice here.

DMac88
Caldari
Posted - 2010.05.07 01:55:00 - [7]
 

Hi all,
Thanks for the interest so far, I have already updated the survey based on current feedback (feel free to complete the survey again if you are really keen).

I understand the major issue will be gaining trust in this service and simple put; that I will not take everyones ISK. Whilst I must say that I will not I know this statement is worth nothing without trust.
If you look up this character (DMac88) in game, you will see that this is my main account and even in the Eve universe I still believe in the philosophy that honesty is the best policy. I'm sure anyone who has encountered me in game has had pleasant dealings with me.

I am fully open to any suggestion on making this the best service available.
In all honesty I am looking to build this service to gain a constant supply of ISK, paid to me through brokerage fees each time you guys make a trade. Put short I value a constant source of income over one lump sum, no matter how large that sum is. I love this game and hope to be around for years and years to come, as character DMac88.
---May I add without angry investors chasing me around the galaxy.

I hope you will all find that I am an honorable man and for those of you willing to risk some ISK on that, I wish you all the best in your future trading, may you be an advocate for this service.

Regards,
Drew MacIntyre
Director
MSX

Krythas
Posted - 2010.05.07 03:54:00 - [8]
 

Originally by: DMac88
Hi all,
Thanks for the interest so far, I have already updated the survey based on current feedback (feel free to complete the survey again if you are really keen).

I understand the major issue will be gaining trust in this service and simple put; that I will not take everyones ISK. Whilst I must say that I will not I know this statement is worth nothing without trust.
If you look up this character (DMac88) in game, you will see that this is my main account and even in the Eve universe I still believe in the philosophy that honesty is the best policy. I'm sure anyone who has encountered me in game has had pleasant dealings with me.

I am fully open to any suggestion on making this the best service available.
In all honesty I am looking to build this service to gain a constant supply of ISK, paid to me through brokerage fees each time you guys make a trade. Put short I value a constant source of income over one lump sum, no matter how large that sum is. I love this game and hope to be around for years and years to come, as character DMac88.
---May I add without angry investors chasing me around the galaxy.

I hope you will all find that I am an honorable man and for those of you willing to risk some ISK on that, I wish you all the best in your future trading, may you be an advocate for this service.

Regards,
Drew MacIntyre
Director
MSX

Excellent to hear.

So you'll have no problem offering up collateral equivalent to at least 100% of the value of the shares traded through this exchange ?

Naturally, to be held by a trusted third party in event of a scam ?

Mme Pinkerton
The pink win
Posted - 2010.05.07 06:18:00 - [9]
 

Edited by: Mme Pinkerton on 07/05/2010 07:02:10

What's in it for the business manager?

His offering gets filled in MD as is, he can already pay out dividends through the in-game share system without hassle and why should he care about how easy it is to resell his shares?

All your service seems to do is reduce demand for his shares/bonds as you decrease their effective ROI through transaction fees...
(and possibly add an additional layer of regulation which the business manager won't like either)

You need the IPOs on your exchange to make any money as resale volume of shares/bonds is extremely low (and will probably stay very low even if a convenient trading platform exists).

=> your business model seems to require that investors will prefer your exchange to such a degree that offerings that would ceteris paribus not be filled in MD will get investment on your exchange. Otherwise there seems to be no incentive for the business manager to get his shares listed on your exchange. Do you think this is realistic? How will you achieve this?


edit: why is resale volume so low? and why will it stay this way?

Most offerings in MD are for fixed-rate bonds. The value of an investment opportunity is determined by expected payments, variance of each payment and market interest rate. The market interest rate in MD is very hard to measure (there are no safe investments, risk profiles of individual investment opportunities are highly subjective and the interest rate/risk combinations offered don't seem to be always consistent) and only tends to change slowly over time. Expected payouts/variance of payouts are pretty boring with fixed-rate bonds and essentially only reflect the perceived risk of default.
In most cases the perceived risk of default stays pretty constant until the business manager says "I scammed you fools", exceptions are missed interest payments/periods of unannounced absence from the game by business managers who are deemed to be highly trustworthy.
So, in conclusion, the speculative motive hardly factors into the decisions taken on the secondary market.

This is of course different with shares(*) which pay out dividends as a share of profits (you can expect profits to rise/fall, ...) but shares (as opposed to bonds) have become exceedingly unpopular in MD, as the amount of profit realized most often does not primarily depend on market conditions but on the effort the business manager is willing to invest (which is very difficult to judge by investors ex-ante), as there is no easy scale to evaluate the success of the investment (if the business manager failed to meet his predictions but returned a positive ROI, can you call him a total failure in every MD thread afterwards?) and as variable returns may increase the risk of burnout.
T4U is an example in which selling equity rather than debt has been successful (and actually makes sense imho - it is an extremely low effort venture with high dependency on market conditions, so most of my points above don't apply).

That leaves the need for liquidity as the main reason for trading bonds: some investors sell their bonds (at a discount) because they urgently need liquidity; due to the static conditions outlined above they cannot expect to make a profit doing so (why would anyone be willing to pay more than NPV? why would they have paid less than that?), so this is not a matter to be taken lightly by the seller and probably due to some unforeseen circumstance.
As a result we don't see a lot of secondary trade with bonds going on in MD.

(*) in MD lingo shares are no real equity but would fall into the mezzanine category - payouts are dependent on profits but you don't get any/only get extremely limited voting rights and are treated no different than creditors in the event of default (as a rule of thumb: nobody gets any money back ;).

DMac88
Caldari
Posted - 2010.05.07 07:31:00 - [10]
 

FUNKY NEW summary of survey results published on MSX homepage Linkage

@Krythas - trusted third party - who is a trusted third part?? Laughing

@Mme Pinkerton: thank you for your in-depth response. I know the in game share system has a certain functionality that would be sufficient for many, however, what I am trying to build here is a market platform filled with statistics, charts, information, transparency, an auditing service, webchat etc
To your comment regarding ultimately return for investors I hope that this is not the case and that just like on the real market, there are big winners and big losers!
I also hope that transaction fees are not too high! I was thinking 10,000 to 50,000 ISK per trade, thoughts?

Kind Regards,
Drew MacIntyre
MSX Director

DMac88
Caldari
Posted - 2010.05.11 09:58:00 - [11]
 

@Sekoletu Aridor - response to question on survey:
Question was- Are you planning some hard-core
financial stuff like futures/options etc.?

The short answer to this is no...
My first priority is to set up a very simple share trading platform for those interested in trading shares in eve corporations and those companies looking to find some sharholders and raise extra funds.

But thanks for you question! keep them coming Very Happy


 

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