openEcry being acquired by OptionExpress

Discussion in 'Index Futures' started by chiefraven, Jun 27, 2008.

  1. is this a good thing or a bad thing?

    because I was interested in opening up an account with them before.
  2. Well...I have an account with OX, perhaps we may see lower commissions? I used to trade with openEcry, gave good margin rates. I wonder if OX will use OE's platform?:confused:
  3. From what I've heard, looks like a good thing (for now at least). I trade there and am very comfortable there, so I hope not much changes (if anything for the better).

    Right now being told 'business as usual'.
  4. Care to share some more info brownsfan019....?

  5. CP - not sure what more I can provide. I've been w/ OEC for a while now and hope that it does remain 'business as usual' for them in terms of supporting clients, platform, etc. I can't really say much else as I was told 'business as usual'. Literally, that's it.

    I enjoy trading at OEC and hope that things stay the same or get better under OX. At this point, only time will tell.
  6. If you get a chance, ask the OEC crew if they will be gaining a new feed for the futures platform as a result of the buy out....or if that will all be staying the same too.....TIA. :)
  7. As of now, everything is remaining as is. Business As Usual.... not sure how many times I can say that.

    I'm just a trader there like many here, but I've have been at OEC for awhile and have been able to speak w/ some of the 'high ups' at OEC over the time I have been there.

    And all I have heard is... Business As Usual.


    I should also note - as soon as I heard this, I was on my email w/ them asking what to expect. I HATE being blind sided by anything, so I was trying to find out what this would mean going forward. And right now OEC is what it is.

    Who knows what this will mean 3, 6, 12+ months from now, but that's pure speculation at this point.
  8. "The Company anticipates the transaction to close on July 1, 2008."

    Certainly it's business as usual until the deal closes, at least.

    "said David Fisher, Chief Executive Officer of optionsXpress. “We anticipate significant growth in the futures industry, and this acquisition provides us with a world-class platform to expand our market presence by appealing to institutions and highly active traders.”"

    Sounds as if OXPS will be doing the promoting.

    commented Mr. Tomsic. “This business combination provides a tremendous opportunity for us to accelerate Open E Cry’s growth by leveraging optionsXpress’ robust infrastructure.”

    No question as to who will be calling the shots.

    Open E Cry’s members will receive approximately $13 million of cash consideration and $5 million in stock plus additional consideration based upon future performance. Mr. Tomsic has agreed to a multi-year employment agreement.

    Retaining Tomsic will make for smooth integration. However, "Additional consideration based on future performance" portends a conflict of interest from the free-standing OEC operation.

    As reminder, OXPS is a public company. OEC account metrics are miniscule compared to OXPS. It's all about the DARTs.
  9. One other question....what has been your experience with the OEC platform/feed reliability the past year? TIA! :)

    BTW, thanks for your answer above to my other question.
  10. #10     Jun 28, 2008