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Investors
Through its wholly owned, self clearing broker-dealer (Electronic Brokerage Systems),
Belzberg Technologies provides technology based brokerage services to leading
U.S. and international brokerage houses, financial institutions and hedge funds.
To facilitate clients' trade execution, clearing and
technology needs, Belzberg develops high-quality, highly robust
trading technology. Our
broker-dealer operations enable our clients to execute and clear trades; our
software provides wide spectrum of connectivity and algorithmic trading tools;
and our networks allow connectivity to the world’s leading equity and equity
derivatives markets, thus enabling our clients to trade electronically through
sophisticated yet flexible and intuitive tools.
For further Investor information, please email us on :
investorinfo@belzberg.com
Click on any of the
headings below to show or hide additional information.
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What business is Belzberg Technologies
in?
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Belzberg Technologies, founded in
1993, is a leader in providing electronic trading systems to financial
institutions in the United States, Canada, and Europe. Our real-time order
routing system provides instant confirmation of executed transactions and
connects to all North American stock and options exchanges, Electronic
Communication Networks (ECNs), and major European equities exchanges. Our
systems submit completed transactions to financial institutions’ back-office
systems for straight-through processing. Through our software-based
solutions, we handle a large percentage of the total trading volume on the
Toronto Stock Exchange (TSX) and a growing volume on both the Nasdaq and the
New York Stock Exchange1.
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What is electronic trading and why is
it so important?
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Electronic trading seamlessly
integrates all aspects of a trade through an electronic pipeline. This
reduces the significant amounts of time and costly errors inherent in manual
processing and, in turn, ensures greater efficiency and liquidity in capital
markets.
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What unique advantages does Belzberg
bring to its clients?
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Belzberg offers both buy-side and sell-side
a single connection point to all of North America’s stock exchanges, ECNs,
and options exchanges, as well as major European and, soon, Asian exchanges.
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This connectivity enables clients to access
markets with the greatest liquidity in order to exercise their trade
quickly, efficiently, and at the lowest cost, effectively giving them more
control over the trading process.
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We offer a wide variety of user-oriented
products, ranging from single order entry, automated arbitrage, basket
trading, to spreadsheet trading. We also offer middle-office products as
well as back-office integration products. In short, we offer turnkey
electronic trading solutions for the financial industry that meet front to
back needs.
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How does Belzberg generate revenues?
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We have established a recurring stream of
revenue based on two primary sources:
A fee for transactions derived from:
Equity trades
Options and
Futures transaction processing
A subscription fee for accessing our patented routing technology to conduct
equity trades.
The third, non-recurring revenue stream, is derived from custom software
development.
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How closely is the Company’s fortune tied to
trading volumes?
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Our products are sold to financial
institutions and the professional trading desks of brokerages. Market
conditions do not typically have a significant impact on their trading
volumes. While retail trading may decrease during market downturns, this has
not and is not likely going to have a significant impact on our revenue
because this is not our customer base. We also continue to capture market
share and thus increase the volume of shares traded through our systems.
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How does the company expect to increase
revenues?
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Acquiring new customers and
expanding our presence with existing clients:
As well as targeting more financial institutions and brokerages, we will
continue to offer our innovative technology both internally to existing
clients’ professional traders and externally to their institutional clients.
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Expanding our global reach: In
addition to the North American and major European (London, Frankfurt)
connectivity we now offer, we will launch connectivity to other exchanges in
Europe (EuroNext, Zurich), Asia (Hong Kong and Singapore), and the South
Pacific (Sydney). The greater our global reach, the greater our ability to
attract new customers and expand the relationships we currently enjoy with
our clients.
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Self-clearing status: Electronic
Brokerage Systems, a wholly-owned subsidiary of Belzberg, is a member of the
NYSE and NSCC, making Belzberg self-clearing as well as the executing broker
on our client's trades. Additional new revenue will have significantly
higher profit margins associated with it as there will be no need to pay an
intermediary to execute or clear our client's trades.
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The transaction fee model: The
transaction fee model (per share or per trade) allows us to grow revenues
faster as we sign on new clients.
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Coming regulatory changes:
Prospective pension and social security reforms in Europe and the United
States could inject billions of dollars into capital markets and place
unprecedented demand on current trading systems, fuelling the demand for
powerful trading solutions such as Belzberg’s.
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As well, the requirement to settle financial
transactions within one day of a trade (T+1) will result in the need for
more sophisticated trading software that allows all aspects of a transaction
to be computerized.
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What expertise does Belzberg’s
management team bring to the company?
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The management team brings together
many years of experience in the high-tech industry and high-level
management.
Judith Robertson,
President and Chief Executive Officer. Prior to Belzberg, as President
and CEO of Markets Inc., Judith was responsible for the launch of BlockBook
(TM), one of the first alternative markets in Canada. She was also an
Executive Vice President responsible for product development and strategic
initiatives with Perimeter Financial Corp. Prior to 2003, Ms.
Robertson was a Managing Director with Barclays Global Investors. Over
her 12 year career at BGI, Ms. Robertson worked in San Francisco, London and
Toronto. Positions held include: President of BGIS Canada, Global Head
of Securities Lending and Chief Credit Officer.
Chris Jackson,
President, Canadian Operations. Chris has a 20 year track record in
management of technology based businesses. Prior to Belzberg, Chris
was Managing Director, Perimeter Markets Inc. where he was responsible for
the sales and marketing for all of Perimeter's alternative marketplaces.
Previously was President and CEO for IA Sciences, Perimeter’s business
process outsourcing service for discretionary managed account/wrap programs.
Prior to joining Perimeter in 2003, Chris held senior executive positions at
Financial Models Corporation and Deloitte Consulting.
Donald Wilson was a Manager of
Information Systems at Gordon Capital Corporation from 1991―1993, where he
managed the implementation of the first real-time back-office system in
Canada. In 1993, he worked with Sid Belzberg and Gordon Capital traders to
develop Canada’s first PC-based basket trading system. After successfully
deploying the Belzberg trading system at Gordon in 1994, he joined Belzberg
Technologies Inc. as Chief Operating Officer.
Richard Maisel,
has been Chief Financial Officer of the corporation since February 7, 2005.
From December 2001 to February 2005, he was the Corporate Controller
of the Corporation. Prior to joining Belzberg Technologies Inc., he
worked in various private and publicly traded software companies in Canada
in various senior financial roles. He is a Chartered Accountant and
holds a Bachelor of Business Science (Finance) degree from the University of
Cape Town, South Africa.
Robert C. Sheehan, Chief
Executive Officer of Electronic Brokerage Systems, (a wholly owned
subsidiary of Belzberg Technologies), built a brokerage business that
provided institutional brokerage services to the investment banking
community. That firm, R C Sheehan and Associates, is now a wholly owned
subsidiary of Belzberg Technologies. Robert C. Sheehan is a member of the Chicago
Board of Trade, Chicago Board Options Exchange, the Chicago Mercantile
Exchange, and the Chicago Stock Exchange2.
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Who are Belzberg’s competitors?
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We have many competitors in various aspects
of the products and services we offer, but very few competitors that offer a
full turnkey solution from front to back.
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This is a difficult market to enter because
of the extensive technical requirements necessary to effectively serve a
time-sensitive, regulated clientele. In short, there is no room for errors.
As a result, customers must be extremely demanding and they look to
established names to provide them with the software they need. We have
successfully penetrated this market by demonstrating our technical know-how
and by our user-friendly interfaces that makes the trader’s job easier.
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How can Belzberg compete in key markets such
as New York and London when its head office is located in Toronto?
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We have offices in New York
and Chicago, and as such, are in close day-to-day contact with our current and
potential customers.
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Belzberg Technologies has inter-office video
conferencing for daily face-to-face meetings and we have established data
networks with remote access where all offices have instant access to all
servers and networks, as security permits. All locations act as one team to
capitalize on our combined strengths.
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It is important to note, however, that we
have developed considerable cross-border expertise due to our Canadian
origins. Our Canadian clients demanded connectivity to the U.S. exchanges.
As a result, early in the existence of our company, we have developed
leading, innovative technology that allows for cross-border transactions,
including a foreign exchange component. Our origins, in part, have provided
us with an added competitive advantage.
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What makes Belzberg an attractive investment?
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Notes:
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1
Past Performance does not guarantee
future results. Every attempt has been made to verify the accuracy
of this information but a rapidly changing business environment can
alter the statements provided within.
2
Refer to FINRA Broker Check:
http://brokercheck.finra.org/Search/Search.aspx
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