'The Foundation Layer for Greater Stability and Equality'
 
A New Parallel Foreign Exchange Market

A fully accessible and free global foreign exchange marketplace, providing the foundation layer for wealth to be more equitably distributed at all levels in society. Furthermore, a catalyst to a global fiscal stimulus with more money released into the real economy through better rates for individuals and businesses the world over.

Devolved and Democratic

If the institutional market concentrates wealth and control, then P2P redistributes and devolves it. P2P disintermediates and fragments the market to allocate smaller trades on a more sophisticated and intricate basis.
 

The Paradigm Shift of P2P

The significance of P2P platforms, as a paradigm shift, is that unlike ‘broking’ platforms which complement the existing institutional market, these platforms undercut and erode it.

If small start-up platforms in their infancy with quite elementary marketplaces are able to erode the long entrenched and highly sophisticated Lending and Foreign Exchange markets in which established financial giants reside, then something has to be said of the evolutionary potential of these new beginnings. 
 

The New Beginnings: A Single Core Market Rate

The institutional market, created through intermediary institutions at once representing both buy and sell trades of their clients, obligatorily has to be structured to feature rates at which they are prepared to buy and sell; bid/offer, two rates.

In P2P marketplaces, as the name suggests, Users, connecting via the internet, represent themselves directly in the market, thus pre-establishing community buy and sell positions. This allows trades between buyers and sellers to be conducted at one rate.

Imposing a new rule book, the new structuring further levels the market by negating the established paradigm of quantity brought to market as a determinant of rate obtained.
 

Setting P2P on the Path to Market Creation

Nascent P2P marketplaces are simply concerned with facilitating trades at rates which undercut institutions, but structured as they are cannot develop the requisite marketplace dynamics for  market creation.

Failing to appreciate the economics of this new landscape, platforms 'matching' trades internally with no visible Trading Floor, fail to develop any dynamic interaction between buying and selling or lending and borrowing communities. Without any interaction, there can be no basis for developing the requisite forces to drive creation.

Setting P2P on the path to market creation, we introduce a more sophisticated Marketplace with a new P2P Trading Floor in which both congregated communities are able interact and trade. Developing the requisite dynamics of market forces for valuation, it is further, designed to accomdate both retail and speculator requirements, catering for the first time to both constituent communities driving markets.
 

New Market Information and A Devolved Collective Valuation

Harnessing the unrestricted reach of the internet to not only facilitate global trades, but also data collate directly from the global community as transactions are conducted, to power an unprecedented new centralised repository of real-time market information. With improved inference for all, efficiency of adjustment and consequently, valuation would be enhanced.

As opposed to intermediary institutions who buy from sellers and sell to buyers, these new marketplaces as facilitators, facilitate transactions directly between buyers and sellers. The adoption of positions by Users themselves within the marketplace means that risk and valuation are consequently devolved to the global community.

Devoid of existing intermediary distortion, maverick behaviour and influence, global markets would not only be set down a more efficient and equitable path, but one of greater stability as well.
 

To read about ‘New P2P Commodity Marketplaces’ click here.