The footprint there is the whole nine-yards: Internet trading on the front end, linking through to Proquote Traders RSP network, and settlement and custody linking through to Euroclear UKI, says Mike Foley, CEO of peterevans.
While this may conjure up images of trading operations at a large trading firm such as Tullett Prebon, instead Foley was holding up a wafer-thin iPad and skimming through an application from Simply Stockbroking, an online dealing service launched in 2009 that charges a fixed 8 commission for trades in UK shares.
The app, available to download from Apples App Store, launched in October 2010, and allows clients of Simply Stockbrokings to trade and monitor their portfolio in real time. The app was developed using xanite Wave, the share-trading iPhone technology developed by peterevans.
Enrolling on the Simply Stockbroking site takes three or four minutes, and you can be trading in minutes, says Foley. Once you have done the trade, a PDF of the contract gets sent to a secure mailbox, and the account is updated in real time.
As dealing methods become increasingly automated, the ease of installation of an iPhone app that allows trading in real time may be another nail in the coffin to the execution-only stockbroker that traditionally dominated the 50,000 trades per day retail trading space.
Gary Wright, C.E.O., B.I.S.S. Research explains: peterevans has really made (an) industry-shifting opportunity with their new Apple app, which provides simple execution of transactions on the London Stock Exchange, whilst achieving STP, as the confirmed deals are automatically routed to self clearing. This has the far-reaching potential of eliminating execution-only stockbroking. The value provided by peterevans, (a) simple but ingenious offering to the retail investor, can be measured in its ability to gain wholesale pricing by achieving best execution from the wholesaler, cutting out the now-unnecessary middle man, ‘the stock broker.’ I anticipate that this application will be replicated in the industry as its potential is realized. The further additional values to this application could include aligning the payment instruction alongside the executed transaction, thus providing risk-free and virtually instantaneous settlement.”
Time will tell if the app changes the world of retail stock-broking but see for yourself here.