Investments
Echobay invests in early stage businesses along the Exchange Industry Vertical. Its portfolio focuses on Technology Startups, Analytics Firms, Brokers, and emerging market exchanges. Additionally, the firm has invested in publicly traded companies it believes stand out from industry peers. This is often done in “pairs trades.”
Technology:
FMX Connect
FMX Connect is a Commodity Portal for professional brokers, traders and retail investors. Currently in Beta, the site combines: data, news, analytics, government reports, and independent third party research on a single web-based screen.
FMX has developed search and collaborative tools for members to access its extensive data base.
- Commodities — Energy, Metals, Agricultural, and Carbon Markets (q4).
- OTC Energy Data — FMX Database of prices and volumes for Cash, Swaps and Options markets.
- Option Analytics — Volatilities, skews, settlements, and activity for multiple commodities.
- Market Recaps — Prices, charts, volatilities, and key trades from the world’s markets.
- Proprietary Content — Historical Implied Vols, FMX sentiment indicators, exclusive interviews.
- Independent Research — From globally renowned Cameron Hanover and others.
The firm currently is in talks with several exchanges and emerging market brokers to carry their data. It is in advanced talks with a Brazilian Commodity Broker to distribute prices and research to their combined clientele.
www.fmxconnect.com
Exchange Seats:
Emerging Markets
Echobay has purchased seats on two emerging market exchanges in partnership with a local firm, which it intends to hold for a 2 to 5 year period.
Analytics Firms:
CiS Options, LLC
CiS is a research and trading firm operating in the Commodity Derivative market space. From 2005 to 2007 it served as GP to CiS Energy LP, a successful arbitrage fund. Started by Vincent Lanci as an options market-making firm, CiS Options has since added advisory services specializing in the valuation and risk management of commodity derivative portfolios. The firm has recently created a second fund, CiS Partners LP, to trade in emerging markets commodities.
Sometime in 2010, CiS intends to expand its analytics business by developing a web-based platform for the valuation and risk management of commodities portfolios. The product will be globally accessible without download and aggregate instruments from multiple exchanges.
www.cisoptions.com
Stock Positions:
Long-Short Pairs
From time to time Echobay executes long-short positions in the equity markets involving exchanges, brokers, or other firms it feels will benefit from changes in the markets. Often time the opportunity arises from technological or regulatory advantages a company’s business model embraces. Sometimes the opportunity represents itself as a reflection of a franchise’s protective moat around its listed products.
