Oct 26th 2007, 12:00 system announcement
by Bogart Beck
SL Capital Exchange - CEO Report - October 26, 2007
October 26, 2007 - SL Capital Exchange (SLCX) - JT WorldSLCX Shareholders and potential Investors,
Arbitrage has asked me to give you all a quick update on SLCX initiatives. As you probably know, we've been working on several rather important initiatives - a few with success to report and one or two that are still moving at a snails pace at best, as follows;
Foremost, with regard to the ongoing Investor Allen saga; it has now been more than a week since Arbitrage or I have been directly contacted by Investor Allen. We did receive a contract proposal that was sorely inadequate and did NOTHING to protect the interests of the AIG Shareholders or Allenvest Depositors, as such I drafted a contract for review and approval by Mr. Allen - we've heard nothing since except for a report that his account has been suspended by LL and that several of his SIMS have been SOLD as well as a copy (copies?) of the AVIX Trading Platform WITHOUT THE PROCEEDS BEING DISTRIBUTED TO HIS CLAIMANTS. As such, I moved this morning to contact the caretaker of the Allenvest Depositor records and have asked such records to be surrendered to me as Trustee so that I can begin liquidating and distributing the proceeds of such liquidation to the claimants - we'll keep you posted should anything encouraging come of that request.
This past month there have been several attempts by a handful of nefarious parties to either game the SL System by manipulating shareprices or misrepresention. As most of you know, the CapEx Management Team has a NO TOLERANCE POLICY when it comes to deception, misappropriation or outright SL Fraud. We have recently suspended at least three Avatar Accounts, frozen the assets of those accounts and reported our findings to LL for investigation. Generally, until we hear otherwise from LL, we do not comment on such investigations. At this point, while early, it appears the renewed diligence we've placed on detection (via the SL Risk.API) and proactive monitoring of the trading system is working and we appear to have stopped nearly two million Lindens worth of fraudulent activity in just under a month.
We are making progress on a handful of system improvements (many of which are the direct result of recommendations or requests made by YOU, the Investor). Keep those requests coming - each are reviewed and considered diligently by both the management team and our coding partner Tango11. The NET EFFECT, however, of all of this programming activity is that our expenses for the last sixty days and likely next 90-120 days are exceeding our current Exchange Revenue run rate - (we are running at a substantial deficit each month as can be seen clearly in our August and September Financial Reports). As a result, we have made the difficult decision to discontinue the $100L TRADING COMMISSION CAP that was introduced early this summer as a promotion. Effective November 01, 2007 we will resume a straight-line commission program for all trades. Honestly, this policy change really only affects the very largest 5-7% of our investors in most cases and a few "institutional" traders that do high volume trades
To help offset those incremental costs CapEx has just introduced an EXCHANGE AFFILIATED AGENCY program. For more information on the program, please CLICK HERE. In the long run we believe that those folks who work the Agency program diligently will recognize more than enough revenue to offset incremental trade costs.
We have SEVERAL other exciting things happening that we'd hoped to be able to share by now, but, as always we're a little behind as RL Events have forced postponment or re-scheduling of important conferences. I hope this report gives you food for thought and a feel for what we're doing on your behalf here at SL Capital Exchange,
On behalf of the entire Management Team - Blessings,
Bogart Beck
CEO, CapEx