Tuesday, July 6, 1999
SANTA MONICA, Calif., - GlobalNetFinancial.com, Inc., (OTC Bulletin Board: GLBN), the international multimedia provider of online financial news and information services, today announced a licensing agreement with NexTrade. The licensing agreement provides GlobalNet with royalty free, worldwide rights to NexTrade's proprietary, cutting edge modular Electronic Direct Access Trading System (E-DAT). This agreement is a major step in GlobalNet's quest to become an all inclusive, vertically integrated, provider of global on-line financial products and services.
NexTrade, based in Clearwater, Florida, is one of only nine SEC approved Electronic Communications Networks ("ECN"). As an ECN, NexTrade allows individual customers, whether retail or institutional, to trade over the counter securities without the involvement of a principal broker/dealer. NexTrade has the distinction of being the first and only ECN to offer 24-Hour Trading to retail investors through participating broker dealers like GlobalNet and its partners.
Because NexTrade is built on a Windows NT platform, the E-DAT system can be customized to the sophistication level of the online user, making it an excellent online platform for both the beginner point and click investor as well as the active professional money manager.
This transaction strengthens GlobalNet Financial's strategy of becoming a significant player in the online brokerage industry. The Company plans to combine its web sites' unique financial content, investment and analytical tools, and a significant educational program, to drive on-line trading executions.
Commenting on the announcement, Stanley Hollander, president and chief executive officer of GlobalNet said, "Our license of a proprietary E-DAT Trading System, in conjunction with our previously announced investment inGRO Corp., an online brokerage firm, enables us to participate in all facets of the most sophisticated end of the online trading business."
Mr. Hollander added, "E-DAT is the perfect vertical complement to GlobalNet's online financial content. With the combination of E-DAT and the licensing of the seamless trading technology being developed by Telescan (Nasdaq: TSCN), a visitor to our web sites can discover new investment ideas, take advantage of our analytical tools and execute trades without ever leaving oursite."
Unlike browser-based online brokers who may be selectively routing order flow to pre-arranged market makers and dealers in return for payment, E-DAT enables investors, from their own PC's, to enter and execute trades directly with stock exchanges, market makers and ECN's through a brokerage firm offering E-DAT software. E-DAT allows investors' orders to be immediately reflected in the marketplace and executed in real-time, resulting in better executions with low priced commissions.
Mark E. Yegge, Chairman and CEO of NexTrade, commented, "We are excited about combining the enormous market strengths of GlobalNet Financial with NexTrade's technological trading advantages. The synergy among all of the participants involved make for a strategic partnership that will go a longway toward revolutionizing the global marketplace."
About GlobalNet Financial.com, Inc.
GlobalNet is an international provider of on-line financial news and information services designed to combine financial content, investment tools, online trading and other transaction executions. GlobalNet's subsidiary, MicroCap1000.com, focuses on companies with a market capitalization of under $500 million and is designed to be a leading source for information on the microcap sector featuring original daily articles and a real-time index. Through GlobalNet's alliance with Freeserve Limited, the United Kingdom's largest internet service provider (ISP), the company launched UK-iNvest.com as the exclusive provider of investment information within Freeserve's Money channel featuring interviews and commentary with leading investment managers and analysts about stocks, funds and market trends. GlobalNet anticipates continuing its worldwide expansion of investor oriented financial sites.
GlobalNetFinancial.com, Inc. is headquartered at 2425 Olympic Boulevard, Suite 660E, Santa Monica, California, 90404; telephone: 310-828-8838; Fax: 310-828-7218. The company also has offices in Florida and the United Kingdom. For investor relations, call 800-371-4921.
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