By Vanessa Malone
Since the launch of Horizon’s white-label exchange software, Open Order Book, we’ve been working to deliver the technology to regulated entities and power a global network of investor-driven securities exchanges. The technology couples with a cutting-edge retail trading app where investors of all levels can buy, sell, and instantly settle securities directly from their smartphones.
Open Order Book actively powers a bond trading platform for Piemonte Holding, an A-rated Brazilian bank which closed its R$ 66m(US$ 16.2m) private bond issuance on Ethereum and became the first to include a public secondary trading platform (https://piemontetrading.com) for qualified issuers while offering liquidity potential prior to bond maturity.
We also have a signed MOU with the Antigua and Barbuda Ministry of Finance & Corporate Governance to build and power a digital stock exchange using Horizon’s Open Order Book solution. Horizon has additional international marketplaces in the pipeline that will be announced in the coming months.
On the U.S. front, we recently launched a sports platform that will enable fans to buy and ultimately trade shares tied to a portion of athletes and teams’ income streams. Open Order Book also incorporates unique communication tools that enable issuers to engage with their investors.
Open Order Book aims to address many of the current secondary trading issues we see across the crowdfunding and digital asset marketplaces which we believe will help position Open Order Book as an industry standard.
Here’s what participants will experience on a securities exchange powered by Open Order Book:
REAL-TIME TRADING ON APP
On an exchange powered by Open Order Book, all trading-pairs are quoted, traded and immediately settled against the exchanges’ deposits of fiat currency.
In the U.S. and international equity crowdfunding market, no active secondary marketplace exists today that facilitates real-time trades through an app. Also, most secondary marketplaces have limited market hours or longer settlement times. Open Order Book offers a cutting-edge solution for alternative assets that we believe competes with traditional marketplaces.
Open Order Book is just that, an “open” orderbook. All offers to buy and sell shares are transparently displayed in real-time from the exchange’s investor community.
This is unlike a traditional order book which only displays volumes provided by market makers. The technology operates on a best bid and offer basis where traders can execute a variety of trading strategies to buy and sell shares including immediate or cancel, +1 hour, fill or kill, stop loss, etc.
Further, all transactions are timestamped and logged on a regulatory compliant storage media to increase investor protection.
On an Open Order Book exchange, investors have complete control over any and all movement of their securities. All trades and important transactions are digitally signed, adding increased investor protection from dangerous hacks.
This is a critical core function as just two months ago, nearly 2,000 Robinhood customers had their accounts compromised according to a Bloomberg report. Customer’s personal email accounts were discovered, reportedly off the app, and used to gain access to accounts.
With Open Order Book, the failsafes in place would ask for biometric verification to prevent any withdrawal of funds unless the identities are verified.
STREAMLINED COMPLIANCE & INVESTOR PROTECTIONS
In creating Horizon’s end-to-end securities ecosystem, our team built the Open Order Book technology and worked backwards from there to integrate high-tech, high-touch KYC/AML compliance and cap table management solutions to maintain a positive trading experience.
Open Order Book exchanges also have anti-market manipulation programmed into the software. This means no hidden fees, wash trades, inaccurate volumes, or other common manipulations are able to occur. This aims to create an honest and accurate marketplace while leveling the playing field for the everyday investor.
Open Order Book offers a powerful white-label exchange solution. In addition to the marketplaces mentioned in the pipeline, we believe that Open Order Book will be the backbone of a variety of different trading venues.
Stay tuned to learn more about which jurisdictions around the world will be deploying Open Order Book powered exchanges in the future.
Interested entities can reach us at firstname.lastname@example.org and those who want to be one of the first to try our sports app Global Fan Exchange can join the waitlist here.