FXDirectDealer in the News

Press Releases

Tradition, NA announces Joint Venture with software solutions provider ATG and the formation of FXDirectDealer

Entity to Launch On-Line Foreign Exchange Trading Product in the 2nd Half of the Year.  It expects the market of small to medium size clients to have spectacular growth.

New York, NY, March, 20, 2002 - Tradition, NA today announced the signing of a joint venture with software solutions provider, Advanced Technologies Group, Ltd. (ATG). They also announced the formation of a combined company, called FXDirectDealer, LLC. The joint venture will be responsible for developing, marketing and selling an online trading platform for the small to medium size clients.

By forming the joint venture Tradition and ATG were both able to leverage their individual strengths.  "What was evident to us at Tradition, was we are not a software company.  We rely on software daily but the professional development of an enterprise application is outside the scope of our companies abilities," stated Ted Muller, newly appointed CEO of combined entity FXDirectDealer.  "That is where ATG fit in perfectly.  By combining our 40 years of corporate brokerage experience with ATG's technology expertise, we have successfully leveraged our individual positions.  We are both very excited about our joint venture and our future."

By having the newly formed FXDirectDealer as a Tradition company, the firm has leveraged it's position versus the competition as well.  "We enjoy economies and expertise in all aspects of our business because of our association with Tradition," stated Mr. Muller.  "As a result, our business model is not contingent on trading our way to profitability.  This is an important benefit to our clients.  Competitors who trade for profits live by the sword and can also die by the sword.  We don't want our clients to feel they need to take risk with their margined funds because the company they are trading with are taking positions.   Instead we want them to concentrate on the risks they take in the market.     If I had my margin with some of our competitors' business models, I would not feel too comfortable."

FXDirectDealer is currently looking for a top-tier liquidity provider who can further leverage their business model.  "Liquidity providers in Foreign Exchange have spent large sums of money creating the mechanism to get their prices out.  In effect, the taxi meter is running, and they need quality users of their liquidity" said Mr. Muller.  "We are looking for a liquidity provider who believes in our complete business model and who wants to benefit from what we can offer them."

Mr. Muller feels that the retail foreign exchange market is poised for spectacular growth.  "A sideways to down equity market combined with the disappearance of the macro analysis that worked during the stock market bubble days, makes trading decisions in equities much more difficult.  One need only talk to their broker to understand the difficulty, and that was before the Enron scandal," stated Mr. Muller.  "With foreign exchange, the trader/investment advisor can return to a more macro-based analysis.  Market fundamentals like economic and political news is available on a regular basis from the countries that make up the currency pairs  The market also trades technically, is open 24 hours a day and affords high leverage. It is a matter of education, firms like FXDirectDealer, and time."  Mr. Muller added, "It is our opinion that portfolio managers at Merrill Lynch, Schwab, Morgan Stanley, Lehman Brothers wherever, should encourage customers to apply at least 5% of a diversified portfolio in currencies.  The world is now global.  It is about time foreign exchange became a product for account managers to understand and sell.  Foreign exchange can hedge or enhance a portfolio and should be used."

FXDirectDealer will provide leverage of 50:1 and trade in 6 different currency pairs.  "We will not encourage over leveraging or trading in currency pairs that are prone to fits of liquidity shortages and wide bid/offer spreads," continued Mr. Muller.  "Competitors who give leverage of 100:1 or who trade in currencies pairs that are illiquid, are not only doing a disservice to their clients, but also exposing themselves to tremendous risks.  A currency that can gap over a weekend because of some political or economic disaster exposes not only the customer to large losses, but the firm to margin risk".  Muller added, "We are not looking to be an on-line casino for clients nor are we looking to become a collection agency for clients who blow through their margin over a weekend.  The dot-com days are over.  We expect our clients to be a bit more sophisticated and smart about risks they take.  On the other hand, we will also be a bit more sophisticated and smart about the risks we take." 

FXDirectDealer expects to have a demo version available before the end of the 2nd quarter and be live in the 3rd quarter.

Media Contacts:

Ted Muller
CEO 
Telephone: 212-791-6810
tmuller@fxdirectdealer.com

Greg Michalowski
Director of Strategic Planning and Marketing
Telephone: 866-FOR-FXDD (367-3933)
gmichalowski@fxdirectdealer.com