LOS ANGELES, June 13, 2018 /CNW/ -- American Ledger LLC ("American Ledger"), a financial services and technology company, announced today that its subsidiary, American Ledger ATS LLC, has secured status as an Alternative Trading System by satisfying the filing requirements of the US Securities and Exchange Commission under Regulation ATS. Over 150,000 unique securities are included within the scope of the firm's initial filing, and the firm said that it expects this list to expand significantly through amended filings over time.
American Ledger also announced its plans to develop a wholesale digital securities market to bridge the divide between international public blockchain markets and the US financial services industry. The plan is focused on the development of an institutional secondary market to support ETF market makers as well as distribution of wholesale liquidity to funds and broker/dealers offering securitized digital asset portfolios to US investors.
American Ledger plans to launch the new securities market using electronic brokerage and market aggregator software developed by InterDealer Information Technologies LLC ("InterDealer"). The InterDealer software and network has already been used to execute over one million trades in the fixed income and derivatives markets. The American Ledger platform will operate on InterDealer's trading network that is now connected to 75 of the largest market makers active in the US fixed income markets.
American Ledger was founded by Dan White, a serial entrepreneur and 25-year veteran of electronic trading markets. Prior to starting American Ledger, White developed electronic brokerage systems for several institutional over-the-counter electronic markets. He was an original developer of EBS, the world's largest and most successful foreign exchange brokerage service launched in 1993. White founded Tradesoft Technologies in 1997 where he developed the electronic trading system used by Euro Brokers to launch its emerging market bond ATS. Euro Brokers purchased Tradesoft in 2000 and White became Euro Broker's Chief Technology Officer. In that capacity, White's brokerage systems were deployed to over-the-counter securities and derivatives markets in Europe, Asia, and the Americas including interest rate swaps, interest rate options, US treasury swaps, money market loans, credit default swaps, floating rate notes, and US agency bonds. In 2005, White founded InterDealer to provide electronic brokerage systems to institutional brokers, banks, and hedge funds. In 2007, InterDealer systems handled over 15% of US inter-dealer-brokered credit default swap transactions. White is the original architect of the MTS BondsPro corporate bond ATS and the UBS PIN-FI fixed income and credit default swap order matching service now known as UBS Bond Port. The PIN-FI system was also deployed as a SEF aggregator operating under Dodd Frank regulation and has operated in 27 countries. The electronic trading services launched on the American Ledger software platform have been recognized with several awards including four "Electronic Trading Platform of the Year" awards from publications such as Institutional Investor Magazine.
In addition to institutional brokerage services, American Ledger said it plans to offer software to facilitate digital asset management, trading and settlement by broker/dealers to help these firms satisfy the increasing customer demand to participate in blockchain related investments. American Ledger CEO Dan White said, "Our mission is to enable regulated broker/dealers to provide their clients with efficient access to suitable investments in digital securities. We serve traditional broker/dealers advising sophisticated clients as well as tech-savvy hedge funds who are active in international cryptocurrency and token markets."
American Ledger explained that it plans to offer a "retrofit" solution for existing ETF market makers who have successfully deployed their systems in fixed income and equities markets and wish to leverage their technology assets by expanding into the cryptocurrency and security token markets. The firm said its solution offers a FIX API for trading, and its post-trade systems interface with back office systems using traditional clearing and settlement protocols.
White said, "We have seen the rapid expansion of international markets for Bitcoin and other cryptocurrencies, however these heavily fragmented markets are not ready for the massive influx of funds from the US investors that would likely follow the introduction of a cryptocurrency ETF. Our firm and our market aggregator technologies have an established track record in serving ETF market makers in the fixed income markets."
On the topic of regulation, White explained, "We have many years of experience managing automated systems in evolving markets that frequently outpace regulations. While US regulators are actively pursuing fraud in ICO markets, they are understandably cautious in their approach to digital assets freely traded on a public blockchain. Where we offer services in either the capacity of a broker through American Ledger ATS or in the more limited role of software vendor, our solutions are designed to enable firms to effectively manage the nine fundamental pillars of risk we believe are most important to regulators. These areas are: operational risk, market risk, credit risk, liquidity risk, sales risk, fraud, money laundering risk, safekeeping of customer assets, and the accurate calculation of each firm's net capital. By offering appropriate solutions to participants that address each of these areas, we can supply the core technologies necessary to effectively offer and sell suitable digital asset investments. In doing so, we strive to deliver the streamlined customer experience that has become a high priority for digital asset investors."
Continuing, White also outlined the firm's discussions with regulators, "We maintain an active dialog with regulators to provide information regarding our solutions, to answer their questions, and to show how our solutions can represent a substantial improvement over current market practice. In our discussions, we suggest novel ideas, however in our deployments, we respect the pace of regulatory change. We are committed to maintaining our active engagement with regulators as the rules continue to evolve."
Non-institutional US investors considering an investment in digital securities should contact their registered broker/dealer or investment advisor.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, qualification or availability of an exemption under the securities laws of that jurisdiction.
This news release contains certain "forward-looking statements" including, without limitation, statements regarding the launch of the ATS market and plans related to digital assets. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: views of investors, regulators, customers and potential customers, advisors, brokers, and their clients, interpretation of existing laws, possible changes to laws, regulations, or rules, ETF markets, influx of funds into ETF markets or other investments, securitization, evolution of blockchain markets, legality of securitized digital assets, legislation, compatibility with existing systems and the ability to integrate with systems, the requirements for retrofitting existing systems, fraud or alleged fraud in ICO markets, suitability, the ability of American Ledger ATS, InterDealer, or American Ledger LLC to manage the risks associated with planned activities, regulatory approvals, and the ability of American Ledger, American Ledger ATS, or InterDealer to obtain qualified staff, develop software deemed compliant in all cases, customer acceptance of any products or services, American Ledger ATS's ability to open new accounts, and the ability for any party to execute its plans in a timely and cost efficient manner. Any forward-looking statement are only predictions and reflect beliefs and expectations and are subject to uncertainties and subject to change at any time. We operate in a very competitive and rapidly changing environment. The US regulatory stance and associated requirements regarding public blockchains and digital assets are unclear. American Ledger ATS may not have all of the approvals necessary to conduct business activities discussed in its plans and it may not be able to obtain such approvals. New risks emerge from time to time. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Except as may be required by applicable securities laws, American Ledger, American Ledger ATS, and InterDealer disclaim any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Additional Disclaimers and Important Information:
American Ledger LLC is the parent company of American Ledger ATS LLC, a registered broker/dealer and member FINRA/SIPC. American Ledger LLC is not a broker/dealer and references to American Ledger's activities may refer to activities that are or may be conducted by American Ledger ATS LLC.
Dan White is the founder and CEO of both American Ledger and InterDealer Information Technologies LLC.
The services, features, and products mentioned above are or may be offered through one or more of the entities mentioned above depending upon the activity and regulatory requirements. The operation of the ATS is limited in scope and subject to the descriptions in its effective Form ATS on file with the SEC. Certain software functions mentioned may be provided through software licensed to customers of the firm. Such software may or may not be connected to the ATS. The description above does not constitute a complete description of the operation of any software and its interconnection to other systems. Certain parties connected to InterDealer's network may need to take further steps to establish sufficient connectivity to services described above. American Ledger ATS LLC is the same entity originally named CreditStation ATS LLC (CRD #283362). Certain regulatory websites may still refer to this entity as CreditStation ATS LLC.