Earlier this week, Preventia, Inc. (OTCBB: PVTA) announced a license agreement which allows it to use and otherwise exploit a proprietary trading system designed by Private Trading Systems PLC (“PTS UK”). The system facilitates the trading of a variety of assets – from stocks, to insurance related products, to carbon credits and bonds. Essentially, PTS UK claims, its system can be used to trade almost any asset that has, or can obtain, an internationally recognized individual identifying number.
Preventia, a U.S. company now headquartered in Toronto, Canada, was recently acquired by new owners to facilitate the new owners’ mission of working “with corporate clients to develop, market and distribute financial products for dematerialization and electronic trading”. “Dematerialization” refers to getting rid of paper securities in favor of “book-entry” securities. The concept of a book-entry security should be familiar to anyone who has owned shares in a publicly-traded company and whose ownership is or was represented by brokerage or bank statements rather than personal possession of an actual stock certificate.
As advertised, this trading system has multi-currency capabilities and offers near instantaneous settlement. In other words; funds, securities and/or commodities will be transferred between members in near real time. This real-time settlement feature removes much of the back-office settlement function required for a lot of trading.
According to the license agreement, PTS UK (through a subsidiary) will most likerly operate the electronic trading platform and Preventia will develop and market products for dematerialization. Preventia may also grant sub-licenses or otherwise enter into agreements to allow third parties to use the system and trading platform.
In the press release announcing the agreement, Preventia’s CEO, Robert Stevens, was quoted as saying: “I’m delighted about the license from PTS and the opportunity to use and license their system. Given the nature and direction of trading in today’s marketplace, I believe our exclusive license with PTS is a landmark step forward in the globalization of financial products. One that has opened the door for Preventia to develop, market and facilitate a broad, new range of financial products for dematerialization and electronic trading worldwide.”
You may visit Preventia’s website by clicking here.
More details about the system are available at the PTS UK website here.