A.B. Watley Group Inc. Becomes a Financial Services Technology Provider With Launch of New Proprietary 'Direct Access' Trading Platform.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 3, 2000 - Significant revenue generating opportunity through potential B2B licensing agreements. - Software expected to significantly increase operating margins through the elimination of approximately $1,200,000 in monthly operating costs. - Company would have posted a profit of as much as $0.11 per share during the latest quarter had it been utilizing the platform. A.B. Watley Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ABWG) premier provider of online and Institutional trading services through its brokerage firm A.B. Watley, Inc. (www.abwatley.com), today announced the first set of clients will be transitioned tomorrow onto the Company's proprietary direct access trading Direct access trading is a technology which allows stock traders to trade directly with market makers or specialists, rather than trading through stock brokers.[1] platform. During the month of August, approximately 4,000 existing direct access clients and all new accounts will be transitioned to UltimateTrader II with the remainder of the client base being transitioned over the next two months. "The transition of our client base to our proprietary trading Proprietary Trading When a firm trades for direct gain instead of commission dollars. Essentially, the firm has decided to profit from the market rather than commissions from processing trades. platform will have a significant impact on the Company's overall profitability," stated A.B. Watley's Chief Financial Officer Joseph Ramos. "Based on our latest quarterly results, the Company would have posted a profit of as much as $0.11 per share had we been using our own UltimateTrader II. Going forward, we anticipate continued improvements in profitability as we move to a fixed cost structure and begin the process of actively pursuing licensing agreements," continued Mr. Ramos. Chairman and Chief Executive Officer Steven Malin commented, "The release of UltimateTrader II is a tremendous milestone in A.B. Watley's history. The cost savings represent a significant achievement. Going forward, the opportunity to license the platform is very exciting and we have already initiated preliminary discussions with a number of potential licensees; we are confident that we will sign agreements with numerous online firms in the coming months. Since our platform is a Unix based Refers to a Unix operating system. The operating system may comply with the UNIX specifications governed by The Open Group, such as Sun's Solaris, or it may be an operating system based on the architecture and principles of Unix, such as Linux. Java software suite, running on the Sun Solaris platform, we have the ability to scale more efficiently and economically than the NT/PC based products. Schwab's acquisition of CyberCorp brought `direct access' trading to the forefront of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and A.B. Watley is well positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. it." Benefits of the proprietary software to A.B. Watley include significantly increased scalability, reliability, and manageability. The Company expects the proprietary software to substantially increase operating margins by dramatically lowering software licensing and data services fees. UltimateTrader II is an enterprise system architecture that the Company will use as a basis for developing new products and services. ABOUT A.B. WATLEY GROUP INC. A.B. Watley Group Inc. is the parent Company of A.B. Watley, Inc., a multifaceted, technological and service-oriented brokerage firm offering two proprietary online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. systems, UltimateTrader(R)and WatleyTrader(TM), that provide realtime data feed and instantaneous execution for the most active segment of the online trading community An online trading community exists to provide its members with a structured method for trading, bartering, or selling goods or services. These communities often have forums and chatrooms designed to facilitate communication between the members. . The A.B. Watley, Inc. Institutional Sales and Trading Division specializes in the execution of complex and sensitive large-block equity transactions for institutions, major investment managers, insurance companies, banks, and high net worth individuals. A.B. Watley Group Inc.'s competitors include E*Trade, Charles Schwab Charles Schwab can refer to:
DLJ Donaldson, Lufkin & Jenrette Inc. DLJ Drive Like Jehu (band) DLJ Defence Laboratory Jodhpur (India) DLJ Dead Letter Journal Direct and National Discount Brokers. SAFE HARBOR Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. STATEMENT Certain statements contained herein, including statements regarding the development of services and markets and future demand for services and other statements regarding matters that are not historical facts, are forward-looking statements (as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, as amended). Any number of conditions may occur which would materially affect important factors in this analysis and materially change expectations. These factors include, but are not limited to, customer trading activity, loss of one or more significant customers, change in technology, issues involved in the launch of new or modified software programs, issues involved in acting as licensor for proprietary software, shifts in competitive patterns, ability to manage growth effectively, risks associated with acquisitions including integration risks, risks associated with strategic partnerships, various project-associated risks, substantial competition, general economic conditions, risks associated with intellectual property rights, risks associated with international operations and other risk factors listed from time to time in A.B. Watley Group Inc.'s filings and reports with the Securities and Exchange Commission. |
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