Configuration of outcry vs electronic

A Comparison of FUTURECOM'S Trading System to the Traditional Method

TRADITIONAL TRADING SYSTEMS

Traditional Trading System

Traditional trading systems involve multiple steps to process orders and transactions pass through the hands of various market participants in route to and from the execution of the order. This unnecessary handling of orders results in higher transactions cost and errors. Orders processed in this manner result in communications from person to person using wire, phone, computer and manually written instructions. Miscommunication is possible each time information is transferred from one point to the next and one person to the next. Once the order is processed on the trading floor the client may or may not get the best offer to sell or bid to buy. An order placed in Tampa Florida at 9:12 and one placed in Los Angeles at 9:12 will be filled at different times on the floor. If the Tampa order was placed at 9:11 there would be no assurance it would be filled before the order placed at 9:12 from Los Angeles.

ELECTRONIC EXCHANGES

Electronic Exchange System

Electronic exchanges efficiently match orders according to preset price/time priority rules. Orders are entered directly on to the exchange by traders who are able to immediately list limit orders and immediately fill market orders. Clearing is interfaced with trading and position reports are available to traders with profit or loss reported current up to the minute of the last tick.

Audit trails are recorded of each participants trading session and transactions are matched without regard to who is trading or how many contracts are offered.

Lower transaction cost will significantly benefit traders. Hedgers will be able to produce their products at a lower cost while transferring risks and speculators will not have returns yields harmed by high transaction cost.