Platform : LUSENET : Third Habitat : One Thread

Dear All,

I've been thinking about the appropiate model for the venture in terms of what would people like to see and what would add the most value. I believe that a transaction platform combined with partner research and our own analytical tools could prove to be a very interesting application.

I like the idea about a consortium of banks getting together in one place and improving the liquidity and transparency of the market. The trading engine can improve the productivity of potential partner banks in the sense that they can generate more output per time. Where before it could take them maybe 30 minutes to materialize a trade, now it could potentially take them a couple of minutes or less. At the end of the day their capacity to handle trades is improved...this could be a pitch line to bring them on board.

Another pitch line: First-mover advantage: Who's to say that some other bank is not doing this already?

Another pitch line: Increasing brand awareness. Ability to access a broader audience since the application is Web-based.

Another pitch line: This product constitutes a one-stop solution for participants in the Latin American Bond Market.

In terms of features and prices there could be different levels:

For example: 1) Access to prices and research 2) Access to prices, research, and analytical tools 3) Access to prices, research, analytical tools, and trading platform.

or other combinations.

As for the trading, it is important that we get a cut per every trade since we know that this is where the real money is.

Well, this is a start. Hope we can keep it going. I am planning to get free trial of ABP to study their model.

-- Anonymous, June 05, 2001


I agree with your take on this. There is the need however to properly define just what it is that we intend to do and how we intend to do it. For example, if we propose to do transactions, we need to properly define just what we mean by this. Do we actually perform the transaction on line or do we actually facilitate information to the market? I think that the added value that we bring is improved information to the banks. I propose that we consider the separate value added services that we wish to build and then work on developing those concepts. Since transaction capability is one of the value added services, I'll open a question with that and as we move forward we can open others.

-- Anonymous, June 05, 2001

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