The Basics of Direct Trading
At its heart, TAD3 is about simplicity and connection. It's the financial equivalent of a farmers' market, 🌽 where producers and consumers interact without a supermarket acting as a go-between. This translates to a system where individuals like you and me can trade securities directly with each other, without a traditional broker setting the terms or taking a slice of the pie. 🍰
Exempted Transactions ⚖️
Now, you might wonder, how is this all possible? Well, it's thanks to federal trading exemptions for anyone other than an "issuer, underwriter, or dealer." Imagine the process as if you're handing over a prized painting to a friend. You have a "painting certificate," a tangible representation of your investment 🖼️. Instead of going through a centralized dealer gallery, you and I sit down to make a private deal. 🤝 On our own behalves, I agree to wire you money directly, and you sign the Van Gogh over to me. There's a sense of satisfaction in handling the transaction ourselves, without intermediaries. That's TAD3, powered by distributed ledger technology.
Efficient Secondary Markets 👷♂️↔️👩🔬
Picture this: Miguel, an early investor in an innovative manufacturing startup, can sell his shares to Sarah, a retired scientist, without jumping through the hoops of traditional systems. They find common ground in TAD3, a beacon of efficiency with no trading fees nibbling away at their finances. 🌟
TAD3 Principles 📖
TAD3's Non-Intermediary Model 🚫🏦
When TAD3 don't take a cut, the savings are passed directly to your savings and retirements. 🤑 Imagine keeping every dollar you earn from selling tomatoes in your backyard garden instead of paying a vendor fee at the farmers' market. 🍅💵 This is the financial equivalent. By not charging fees or acting as middlemen, TAD3 empowers investors to keep more of their profits, which can then be reinvested or spent as they see fit—the ultimate financial freedom. 🎉 Moreover, this streamlined approach creates a more dynamic market, where securities change hands more freely and efficiently. 🔄
"Atomic Swaps" Make This Work ⚛️
Facilitating Trustless Trust 🤝
A Unique Network 🌐
The SDEX is part of the actual Stellar core protocol. ⛓ Most DEXes (if not all other than 0x) rely on smart contracts, external service providers, or secondary layers for trading. 🔀 Stellar's direct integration cuts out common security risks associated with those additional systems and provides a transparent, efficient trading experience. 🛡️
Regulatory Compliance 🖋️
Based on extensive legal investigation, securities trading systems using those additional technologies would today be classified as Alternative Trading Systems, which must be registered with and regulated by the SEC (example ATS which presently charges 1% trading fees). 🔍
"When the Exchange went from not-for-profit to for-profit...
the utility function of the marketplace of the exchanges disappeared.
Because once you... flipped the switch to make these exchanges, not utilities,
but for-profit vehicles, now you have shareholders to answer to...
and obviously the largest customers are the HFTs."
We need to level the playing field for all investors, regardless of their trading frequency or volume.
There are a lot of very smart people working on the problems TAD3 solves. For instance, we spoke to a co-founder of the first widespread decentralized order book platform, launched in 2018. The system was built on extremely innovative P2P file-sharing technology, with transaction costs originally starting between 50¢ to a dollar. They got a knock on the door very early on since they'd processed millions of trades almost immediately after launching. For regulatory reporting, they told us you had to scan through dozens of Ethereum ledgers to find a certain kind of specific trading code signature to match a nuanced distributed data/math scheme. That's impossible to conduct efficiently at scale or effectively oversee.
"Someone needs to build a unified system for trading," has been heralded for decades by market advocates, researchers, and investors alike. That's why we built TAD3. If you're a public or IPO-aspiring company looking to access our platform, fundraise, or even just streamline you stock recordkeeping process, 🧮 schedule a free brief consultation here.