Commentary

Erik Hoel
Traders Magazine Online News

Will The Bitcoin Bubble Pop Or Will It Envelop Us All?

Guest contributor Erik Hoel asks the question whether the worst is over for bitcoin holders, or still yet to come, what is yet to come? And why.

Traders Poll

In your opinion, what is the biggest hurdle facing the blockchain?

Cost of implementation

17%

Too many systems available

23%

Not applicable to my business

3%

Uncomfortable with the technology

33%

Nobody else is using it

23%

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August 17, 2011

First New York Takes Eze

By Peter Chapman

First New York Securities has licensed Eze Castle's order management system, parent company ConvergEx disclosed in its recent Form S-1. The licensing agreement has a term of three years. Over that time, the hedge fund will pay ConvergEx fees of about $800,000 per year.

The two firms have close ties. The senior managing partner of First New York, Joseph Schenk, is also a ConvergEx board member. ConvergEx has provided First New York with other products and services in the past, earning the firm about $500,000 in 2010 and $100,000 in 2009.

Eze Castle has more than 400 customers, according to the company. Half of those customers were added between 2008 and 2010. About 20 percent of those switched from competing products.

Eze added 70 customers in 2010. Most Eze users are hedge funds, although more traditional asset managers are using the technology. In the first three months of 2011, a third of new customers were traditional asset managers, Eze reported recently.

 

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