[e-gold-list] Re: Hansa Dollars
I doubt that the market maker fees for Hansa-dollars would go down, as you envisage, below those for e-gold. The reason, in both cases, is the same: the risk taken by the market makers in selling hard money (Hansa-dollars or e-gold) for soft money. The crooks would prey on the Hansa-dollar market makers too. Market makers charge an extra risk premium when you buy with soft money, but when you buy with hard money they do not charge the risk premium. That would apply to Hansa dollars also. That's what I said. There are two factors that will cause Hansa dollars to have a much narrower bid/ask spread as quoted by market makers, than e-gold. You omit the greatest risk factor and the primary cause of the present high markups for e-gold (and of future high markups for Hansa-dollars): crooks stealing from the exchange providers. This may be reduced for harder forms of payment (eg Bank Wires) for larger amounts; but not for the small retail exchanges that were your concern. CCS --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
[e-gold-list] Re: Hansa Dollars
Actually, I overlooked point c. in the contract. I guess there will be a
percentage premium charged by Hansa bank when purchasing Hansa
dollars.
~ Vincent
conditions_purchase= *
{
a) All Purchase requests must be accompanied by a WebFunds account
number. Purchase requests should be delivered by secure means,
and insecure information may be rejected. Purchases must be
accepted and authorised in advance by the Bank, before funds are
sent, as per b) below.
b) Issuance of Hansa Bank US dollars will be on strict payment
of equivalent amount of dollars, and applicable fees, using one
of the following methods:
1. transfer from bearer's USD account held with Hansa Bank,
at no additional charge
2. cheque written on bearer's USD account held with any retail
bank in Anguilla, at nominal charge, and within 24 business hours,
3. Wire or SWIFT to Hansa Bank's trading account,
bearer to pay all incurred fees, bearer to provide full and
acceptable identification details, and transaction to occur
within 24 business hours of clear and settled funds being
made available within Hansa Bank's trading account.
4. any other method suitable to banking probity as acceptable
to the Hansa Bank and its Anguillan authorities, and as
agreed by the Bank and bearer.
c) Purchase will attract a percentage fee that changes from time
to time and is published on the Contract Publication Page.
d) Purchase limits will be set from time to time as published on
the Contract Publication Page. Third-party market makers are
encouraged to deal in lesser amounts.
}
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[e-gold-list] Re: Hansa Dollars
Perhaps you could trade Hansa dollars vs. e-gold (I am not certain just
how much of the Systemics Trader actually works). But I don't think that
would really solve your problem. It would just relocate the problem: how are
you going to get Hansa dollars? You would now need a market trading dollars
(the ones you have) for Hansa dollars. Does anyone have them? Is anyone
selling them? Is buying them any easier or cheaper than buying e-gold?
CCS
I have to admit I had not considered the possiblity of obtaining Hansa
dollars to be a problem. I figured it would be like a normal bank where just
anybody could open an account. After checking out Hansa bank, I see
that isn't the case. They have stringent requirements to open an account.
However, Hansa dollars should be obtainable from market makers for a flat
service charge. The ricardian contract for Hansa dollars specifies the ways
that Hansa dollars will be obtainable:
conditions_purchase= *
{
a) All Purchase requests must be accompanied by a WebFunds account
number. Purchase requests should be delivered by secure means,
and insecure information may be rejected. Purchases must be
accepted and authorised in advance by the Bank, before funds are
sent, as per b) below.
b) Issuance of Hansa Bank US dollars will be on strict payment
of equivalent amount of dollars, and applicable fees, using one
of the following methods:
1. transfer from bearer's USD account held with Hansa Bank,
at no additional charge
2. cheque written on bearer's USD account held with any retail
bank in Anguilla, at nominal charge, and within 24 business hours,
3. Wire or SWIFT to Hansa Bank's trading account,
bearer to pay all incurred fees, bearer to provide full and
acceptable identification details, and transaction to occur
within 24 business hours of clear and settled funds being
made available within Hansa Bank's trading account.
4. any other method suitable to banking probity as acceptable
to the Hansa Bank and its Anguillan authorities, and as
agreed by the Bank and bearer.
c) Purchase will attract a percentage fee that changes from time
to time and is published on the Contract Publication Page.
d) Purchase limits will be set from time to time as published on
the Contract Publication Page. Third-party market makers are
encouraged to deal in lesser amounts.
}
From the contract, it is clear that the best thing a market maker could do
is open an account with Hansa bank, which would enable them to buy
Hansa dollars for an equivalent amount of U.S. dollars without even paying
any service charge. Surely some market makers will be able to meet
Hansa Bank's qualifications to open an account. So long as there are a
few such market makers, competition between them will most likely bring
the cost of purchasing Hansa dollars down to a flat service charge without
any percentage premium.
~ Vincent
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[e-gold-list] Re: Hansa Dollars
I have to admit I had not considered the possiblity of obtaining Hansa dollars to be a problem. Vincent, having lived/banked in Anguilla, I would say a wire transfer is the easiest thing in the world! From the contract, it is clear that the best thing a market maker could do is open an account with Hansa bank,... Note that, IMHO, sending a wire from your own bank to Hansa, would be no more problematic, faster or time consuming than sending instructions to xfer money from your act to another one. That's my take! --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
[e-gold-list] Re: Hansa Dollars
It would just relocate the problem: how are you going to get Hansa dollars? You would now need a market trading dollars (the ones you have) for Hansa dollars. Does anyone have them? Is anyone selling them? Is buying them any easier or cheaper than buying e-gold? Surely some market makers will be able to meet Hansa Bank's qualifications to open an account. So long as there are a few such market makers, competition between them will most likely bring the cost of purchasing Hansa dollars down to a flat service charge without any percentage premium. As I said... you would need a market to buy Hansa dollars and it would be essentially as problematic as that for e-gold. You can buy e-gold with bank wires etc. too and in about the same amounts. I doubt that the market maker fees for Hansa-dollars would go down, as you envisage, below those for e-gold. The reason, in both cases, is the same: the risk taken by the market makers in selling hard money (Hansa-dollars or e-gold) for soft money. The crooks would prey on the Hansa-dollar market makers too. CCS --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
[e-gold-list] Re: Hansa Dollars
I doubt that the market maker fees for Hansa-dollars would go down, as you envisage, below those for e-gold. The reason, in both cases, is the same: the risk taken by the market makers in selling hard money (Hansa-dollars or e-gold) for soft money. The crooks would prey on the Hansa-dollar market makers too. CCS Market makers charge an extra risk premium when you buy with soft money, but when you buy with hard money they do not charge the risk premium. That would apply to Hansa dollars also. There are two factors that will cause Hansa dollars to have a much narrower bid/ask spread as quoted by market makers, than e-gold. 1. No volatility risk in the price. The volatility in the price of gold is a risk that is factored into the e-gold premium. Market makers expose themselves to risk when they hold a gold inventory, and a higher premium is necessary to make that risk profitable. The risk can be hedged somewhat in the futures markets, but the hedging induces its own costs. There is no volatility risk and no hedging cost for dealing in Hansa dollars. 2. Much narrower bid/ask spread set by issuer. Omnipay sets the outside bid/ask spread for e-gold, with the bid at spot gold, and the ask at spot plus a hefty premium. Omnipay's bid/ask spread is pretty wide. Market makers narrow that spread by buying from existing e-gold holders instead of buying from omnipay. Hansa Bank will most certainly set a much narrower bid/ask spread for Hansabux than omnipay sets for e-gold, (with the bid being $1 to redeem, and the ask being $1 plus whatever percentage premium they charge, which can't be too high or they won't get many customers.) ~ Vincent --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
