Archive for: May, 2023

Direct Mail Marketing Rates Are Lower Than Standard Mail Costs

May 27 2023 Published by admin under Uncategorized

What is direct mail and how can it help your business grow? How much does it cost to use it? Direct mail is a powerful way to deliver a message right to your customers’ doors and bring more business through your own, doors or website. One can use postcards or letters to get their information to their targeted audience. In the United States direct mail goes through the United States Post Office directly to the person listed on the card or envelope. Direct mail marketing rates apply if one mails over 500 identical pieces per mailing and then bundles, or places in trays, the items for easier handling. Identical means they must all be the exact same size shape and weight, as well as having the same outside, or visible, images or wording. If you put a picture of a grandfather clock on the outside of one item, they must all have the same picture in the same location on the piece of mail. This can be done either with a postage meter that the USPS provides to the business, or with special stamps that can be purchased. The postage depends on the characteristics of your mail piece. You must pay an annual mailing fee at each facility where you enter mail. Mail pieces must weigh less than 13 ounces, and be able to be scanned by the automated equipment.

Automation prices are available for cards, letters, and large envelopes. To qualify for the lower automation prices, your mail piece must meet specific addressing, bar-coding, and design standards. First class mail is the most commonly used means of doing direct mail marketing’s as these are the most cost efficient to use, and easier to handle.

One can also send out other sorts of things such as incentives or sample merchandise, but this will cost more, even at bulk mail rates. These types of items do not readily fit into the automation machines, and require more human handling, and so will cost more. Even with all these requirements, marketing can save your business both time and money on advertising and bring in new customers.

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Use Your Marketing Database to Precisely Manage Your Marketing Campaigns

May 26 2023 Published by admin under Uncategorized

Effectively and efficiently managing direct marketing data by channel can be a challenge from several perspectives, including:

  • Deliverability
  • Permission
  • Preference

Each channel–direct mail, email, and phone–has its own unique data cleansing, hygiene, and permission-based issues; to keep this newsletter simple, we will not discuss the SMS channel. Some of these issues are driven by the external operating environment and are the same for everyone (e.g., USPS or CAN SPAM compliance). Other issues may be unique to your business or driven by your organization’s specific business rules. For instance, determining whether you want to globally opt-out an individual from all channels when that customer internally opts-out from one specific channel.

When properly applied, your marketing database is your best means to manage the complex myriad of validation, standardization, correction, permission, and channel preference data issues that affect your business. These are not easy issues to manage, but it is becoming increasingly important to have a sound mechanism for administering them. You must be disciplined, precise, and adaptable in how you plan and execute. Fortunately, in these trying economic times, your marketing database provides the framework to accomplish this process, which will increase efficiency, maximize revenue, minimize costs, and reduce liability.

Your key objective is to appropriately classify your direct marketing data by channel as mailable, emailable, or callable. The data that falls into any of these three categories must adhere to deliverability standards while simultaneously ensuring that each individual deemed as deliverable has also given permission to receive marketing communications from your organization. Ideally, each individual’s preferred marketing communication channel will also be applied as part of your process. The following table is not comprehensive, but it is intended to be thorough, thought-provoking, and help you better manage your channel-specific data. Depending on your business you may or may not need to perform all of these processes.

To make the data mailable:

  • Address standardization
  • Delivery Point Validation (DPV)
  • National Change of Address (NCOA)
  • Enhanced Change of Address (performs beyond USPS NCOA standards)
  • Delivery Sequence File (DSF2)
  • Internal direct mail opt-out suppression
  • DMA opt-outs suppression
  • Internal business rule consideration, e.g. can existing customers who have opted-out through external source(s) but not internally opted-out be mailed?
  • Deceased suppression
  • Prison suppression
  • Disaster area suppression

To make the data emailable:

  • Identification of opted-in email addresses
  • Standard email address format and cleanup
  • Domain validation–error correction and dead domain suppression
  • Bogus, prank, and malicious email addresses identification and suppression
  • Email Change of Address (ECOA)
  • Suppression of opt-outs (based on internal opt-out sources)

To make the data callable:

  • Standard phone number format
  • Area code validation
  • Internal opt-out suppression
  • DMA DNC list suppression; both national and for states managed by the DMA
  • Federal DNC list suppression
  • State DNC list suppression
  • Wireless versus land line identification and suppression
  • Internal business rule consideration, e.g. can existing customers who have opted-out through external source(s), but not internally opted-out be called?

Many organizations that either do not have a marketing database or lack a well managed marketing database apply their opt-outs similar to their direct marketing approach–the shotgun, mass contact, market to your entire database approach. But, once the proper processes are in place to manage your data by channel, execution becomes deliberate and specific. For instance, if a prospect has opted out of direct mail and email, but not from phone, you can call the prospect. If a customer has opted out from phone but not from email or direct mail, you can include them in a multi-channel campaign that sends a direct mail piece and follows up with an email. Additionally, if you capture marketing channel preference data, you can communicate with each customer via their preferred channel.

The power, efficiency, cost-savings, peace of mind, and competitive advantage this brings you can be substantial–and you will be able to focus on multi-channel direct marketing instead of worrying about your data.

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Average Testimonials Vs. Great Testimonials & Why It Matters to Your Marketing

May 25 2023 Published by admin under Uncategorized

Testimonials can make the difference between average marketing and great marketing.


Because testimonials are one the strongest forms of proof you can offer to substantiate the claims you make about your product or service.

Most business owners don’t use testimonials at all. If they do, they settle for average testimonials and don’t bother putting in the effort to get great testimonials.

So what makes a testimonial average? What makes it great?

I’ll tell you.

An average testimonial is vague, lacks specific results, and hides the identity of the person who gave it.

For example, “Your company is really great. You helped me a lot.” –John B.

Notice how this testimonial is completely flat. No benefit is stated. No specific result is given. And because John doesn’t give his full name, we have no idea who he is. He could be imaginary for all we know.

Contrast that average testimonial with this one: “Ryan’s sales copy pays for itself. When he created a promotion to sell our Global Puzzle, I was absolutely shocked when I saw the numbers coming in. One email he wrote sold 1,472 puzzles in only 13 days for $28,630.40 in gross retail revenue. Amazing!” –Roger Andresen, Atlanta, GA

In this case, we have a clear benefit, specific results, and a full name for attribution. Plus, we have the city and state where the person lives. Because of this level of detail, readers are much more likely to believe it.

Now, how could this testimonial be strengthened?

Four things come to mind:

  1. Use the person’s photo.
  2. Record the testimonial for audio playback.
  3. List the person’s web site if he has one.
  4. Use the person’s digital signature.

Testimonials are worthless if they aren’t specific and credible. Without specificity, readers assume your product must not be that great. Without credibility, your readers may not believe your testimonials are real. (Some unscrupulous business owners really do fabricate testimonials.)

Follow these simple suggestions and you’ll instantly strengthen your advertising, your marketing, and your overall ability to attract new customers and clients.

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Network Marketing – What’s Your Magic Wand Wish?

May 24 2023 Published by admin under Uncategorized

If you could wave a magic wand and effect one single change within your existing organization, what would it be? Would they spend more time on their business, attend more meetings, invite more prospects to listen in on conference calls or conduct more opportunity interviews?

If you are like the hundreds of direct sellers who have participated in recent DSWA surveys, you would very likely list these among your top five wishes for your team. However, in analyzing the responses and conducting further interviews with a select group of leaders – all of which lead organizations with thousands of distributors – we noticed an important distinction.

The “Magic Wand Wish” of top leaders with teams in the thousands, differed slightly from those with teams in the teens and hundreds. Higher self-esteem, greater confidence, or, as they say in some circles, stronger positioning was a common response from the leaders who have already made it to the top.

Why is this? Because self-esteem is the quality upon which all other skills and behaviors are founded, making us stronger, more confident and better able to take on the daily challenges that are inevitable in this business. Self-esteem is, in essence, how we see ourselves in relation to the world around us and is a major factor for success in direct selling and in life.

Assuming these top producers know a little something about building successful teams, we thought we would explore some ways that you, as the leader of your organization, can raise the level of self-esteem within your organization. Think you have this covered, do you? Well, before you pat yourself on the back and move on to the next article, we suggest you take this opportunity to check and see whether you have mastered the art of building self-esteem or are just giving it lip service.

Heart-Centered Listening

This is a phrase coined by Jennie England, Director of the Coaching Center at the DSWA, which describes what happens when we give an individual our full and present attention. Heart-centered listening takes place when you listen without distraction or judgment;, making sure that you hear not only the words they are saying, but also the meaning behind them. When a person is the recipient of heart-centered listening, she feels valued and respected, which in turn, builds strong self-esteem. Because listening is not a skill traditionally taught, it requires that you seek out a greater understanding of this skill and then practice it whenever you have the opportunity.

ICU Acknowledgment (As in “I see you”)

Do you know the difference between a compliment and an acknowledgment? While many people feel they are similar, the two are as different as night and day. While a compliment makes people feel good about what they have done, an acknowledgment, when done properly, makes people feel good about who they are. Acknowledgment lets your team members know that you see their unique gifts, what it took to accomplish a goal and it is perhaps one of the fastest and easiest ways to build self-esteem in others. As a leader, it’s important not only to understand the difference between giving compliments and acknowledgment but also to practice this skill with your team at every opportunity.

Small Successes

Building self-esteem through small success requires patience and empathy on the part of a leader. This dictates how your team members will grow – at their own speed – not yours. Do you remember how it felt when you gave your first sales presentation or offered the business opportunity for the first time? Once we overcome the butterflies and nausea we once felt early on in our careers, it can be difficult to relate to our new team member’s troublesome feelings with the simplest of tasks. Recognize that breaking big goals into small steps allows your team to feel the exhilaration of success, which builds their self-confidence.

Shifting Their Perspective

As mentioned earlier, self-esteem is greatly determined by the way we view ourselves. People who have a tendency to focus on their shortcomings, wallow in their failures or obsess about their mistakes often have low self-esteem. Help your future leaders move away from these self-defeating patterns toward a more empowering, gentler view of who they are. Do this by refocusing their attention when they are beating themselves down instead of raising themselves up. Help them recognize the power of their personal perception and understand that others can more easily see the greatness within them – when they recognize it within themselves. Because awareness is the first step to creating meaningful change, helping your team members shift their perspective in how they see themselves is perhaps the most important step you can take in building their confidence and enriching their lives.

By incorporating these four elements into your leadership style; Heart-centered Listening, ICU Acknowledgment, Small Successes, and Shifting Their Perspective, you will be making great strides toward building future leaders.

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Selling Your Top Tier Direct Sales Home Based Business Without Sounding Like a Salesman

May 23 2023 Published by admin under Uncategorized

For anyone who operates a home based business in direct sales and network marketing the most intimidating problem you face is often the sales presentation. Can you sound natural and relaxed on the phone? Do you have the right words to use at the right time and can you close the deal? Presentation of any product or service is essential for obvious reasons – no sale equals no revenue.

When talking to your prospects, there are three main answer three main questions you should be prepared to answer at least in general terms. These questions include what the business is all about? What has to be done in order to earn an income? And what amount of money one can realistically expect to make from this opportunity? If you can answer these three questions without faltering you will be well on your way to network marketing success.

How To Answer Theses Three Questions Successfully

1. How much money will I earn? The first rule in any relationship (and this is all about building relationships) is honesty. You want demonstrate the potential of your opportunity in order to make it appealing. You can do this by pointing out what the top income earners in your company are making but be sure to emphasize what these earners do in return for their income. This is showing your prospect the potential income but not misleading them to believe they will be an over night millionaire. Do not exaggerate and provide an unbelievable amount. You have to be honest and truthful. People are lied to enough in life and the opportunity to join a great opportunity from a home based career should not be one of those false information providers.

2. What business are you in? If you’re in the financial education and wealth building through sound investment business – say so – simple and clear. People do not want to feel that they are left in the dark about what a business is about. If they feel like the product is being talked about in a hush-hush tone or fogged over, they will feel uneasy and reject the opportunity. Don’t be tempted to “fake it till you make it” with grand claims of income earned. It seldom works as most people can spot a BS’er a mile off. Again, honesty is paramount and it will come back to you 10 times over!

3. What do I do to earn this income? Explain what you do. I introduce my life changing products and explain how they give you the financial education you never got in school or anywhere else. How they can completely reorganize your financial world and at the same time provide a great income. Then explain how you do the business. Are you completely independent or do you use a turnkey marketing system that does the sales and organizing for you. The more detail you can provide without boring the pants off your prospect the better informed they will be and the more likely they will see the benefit of what you have to offer. It’s always far better to have a well-informed customer than a bitter and disappointed consultant after they buy in.

For rookies, prospecting calls are the toughest part of running a home based. The good news is the more you do the easier they get. If you can force yourself to shut your trap and truly listen to what your prospect is telling you and then be able to provide an answer to their problem, you will connect with them in a way that is 100 times more beneficial for you both than you ever will by blathering on incessantly as soon as they pick up the phone.

The main thing to keep in mind is just to be yourself. If you’re comfortable, your customers will be comfortable. Make sure you thoroughly understand your product so that you are not just pitching an item or opportunity but you are simply telling them about something that can make their life better. If you feel uncomfortable about the product or service you are offering that will come across loud and clear to your prospect. If you believe in your product or service than your customer will as well. Keep the conversation general and comfortable but focused on your prospects needs and you will find your products or services you speak of will sale themselves.

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Marketing Your Business Online – The Easy Way, Especially For Those Just Getting Started

May 22 2023 Published by admin under Uncategorized

Everyday thousands of people start a business or join one or more online/offline marketing programs in hopes of becoming a successful entrepreneur. They seek control over their lives through true financial freedom…control over when, where, how and with whom they do business and, most importantly, control over how they spend their time.

Time is our most important asset. If used effectively towards producing income, the more time you will have to enjoy the pleasures of life…spending time with those you love doing the things you enjoy.

Regardless of whether you seek to become an online or offline entrepreneur, to be successful in business you need to master the art of marketing. If a business is not promoted effectively, it will fail. Advertising is an essential element of any successful business.

Advertising comes in many forms: offline there is print, radio, television, billboard, direct mail, signage and door-to-door. Online there is e-mailing, pay-per-click and flat rate banner advertising, search engine optimization (SEO), blogging and article writing to name a few. But the oldest, and still most effective, form of advertising is word-of-mouth…today we call this social and/or business networking. Not only is it the most effective, it is by far the cheapest.

While all of these forms of advertising can be effective if done properly, the most effective marketing comes from employing multiple forms of advertising. However, when first starting out most budding entrepreneurs have limited budgets and, therefore, need to concentrate on the free or low cost forms advertising first. Offline this includes direct mail, door-to-door and networking; online this is e-mail, blogging, article writing and networking.

The key to success in any business, especially those online is list building. Having a list of qualified prospects (people who have expressed an interest in or have a need for your products and/or services) and customers (people who have done business with you) is essential. Lists allow you to target your advertisements to people you already know have an interest; in doing so, you will achieve greater response ratios, greater sales, greater revenue, greater profits and ultimately greater success.

So how do you build a list?

First you need to define your market. To do this, you need to decide what you are going to sell and who needs, wants and will likely use your product or service. Then you need to target your advertising towards these people and employ a means of capturing their information for inclusion on your list. Once on your list you need to establish an effective “drip” marketing campaign. Drip marketing is nothing more than keeping your name and product in front of your target markets.

No advertising is effective if only done one time. Repeat impressions is key to successful advertising. It’s why companies with household names like McDonalds, Nike and Budwiser continue to spend hundreds of millions of dollars on advertising every year; they know that if they stop advertising they will loose their market shares and eventually likely go out of business.

So drip advertising becomes not only essential for building a successful business, but sustaining a successful business. And here again, the most cost-effect drip advertising begins with building a list.

So how do you build a list?

Well there are slow ways and faster ways to build lists, or you can purchase lists from others. Beware of purchasing or renting lists from others. Not only can they be expensive, they generally do not produce very high response rates. And, I strongly warn you against renting lists, especially through bulk e-mail companies.

If you have an offline business you need to develop a system of capturing information of all persons you advertise to that express interest in your product or services. If you have a storefront or place of business you can ask for information at the time of sale or provide sign-up slips at various locations throughout the store. Offer the mailing list as a way for people to sign-up to receive information on specials or new products and services you may offer…people love a sale. The perception of a discounted pricing is a powerful motivator.

Online list building can be much easier and faster than offline. Social networking sites can be excellent tools for list building and they are generally free to set up an account. They present a subtle way for you to communicate with prospects and customers about products and services you offer.

A more direct approach to list building online is to have a web site address, direct traffic to that address and employ a method of capturing the visitors information. In many instances, this is best done up front, before they view your products or hear about your services. To do this you need what is called a “lead capture page.”

A lead capture page is nothing more than a web page containing a form that a person completes and submits before being directed to the home page of your web site. Lead capture pages are also very important to protecting your commissions if you are promoting an affiliate program.

A lead capture page is one of the most important tools you can use to build a list. Once you have a list of people who specifically asked to be included you need to contact everyone on your list on a regular basis…but do not just send sales promotions, send helpful information so that you can build a relationship with each of them. Make them want to open every email you send. If all you send is offer after offer, they will quit opening your emails and, heaven forbid, eventually opt out…don’t let that happen!

A good list is your most valuable resource for building a down line…and having a down line, earning money on the efforts of others is key to wealth building!

A craftsman earns money off his own efforts; the better his skills the more he can charge, but is always limited in his earnings potential by time. There are only 24 hours in a day for all of us…and we all have to sleep, eat and recreate sometime.

An entrepreneur understands the value of employing others. John D. Rockefeller once said it best when he said: “I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts.”

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Direct Marketing Miscues: How to Survive A Catastrophic Campaign (We All Have Them Right?)

May 21 2023 Published by admin under Uncategorized

There are some truly horrendous marketing disasters – one catalogue marketer who accidentally provided their fulfilment house with the wrong list and mailed a big elaborate expensive mailing to their leads and low frequency purchasers, sending them broke.

There are the odd campaigns sent during a major crisis and they always suffer from a depressed response.

Then there are the ones out of left field that bomb for no apparent reason – they fail to meet campaign objectives, they fail economic/ROI requirements.

Hopefully it hasn’t put you out of the game. If you are taking risks that can end your participation in the game permanently then you can’t be taking the risks that you are. If you are out of the game, your chance of winning is precisely ZERO. A true catastrophe

Direct Marketing Catastrophe Survival Step One: Deal with the emotional component! Setbacks, failures and unmitigated disasters are going to cause most of us mere mortals a bit of a struggle. When your emotions are high you tend to get stressed and most people can’t think clearly enough to solve their problems while they are stressed. They just try and do more of the same but with more intent.

So the first step is to get through the emotional component of your response as quickly as possible. Personally I find relaxation exercises and also exercise really helpful to get through this.

Direct Marketing Catastrophe Survival Step Two: Time To Figure Out What Next. The more in control you are emotionally the more you can generate options for what’s next. That is why this is step 2 and not step 1. Rethink your goals – especially if your goals are more general. If your goal was to sell 2,000 units of Product XYZ – you are really saying you want 2000 times XYZ product price e.g. $197. $394,000 in gross revenue.

There might only be one or two ways to sell 2,000 units of XYZ product. You might however be able to make your $394,000 in a whole bunch of different ways. New products, sales of a combination of existing products, etc. So you can do all sorts of things.

Personally I’ve found that it is far easier to move forward when I have a big list of ideas that I can cull down to a few high probability, high reward activities.

Direct Marketing Catastrophe Survival Step Three: Refocus and move forward. Make a plan and get going. I used to ride horses and the saying was “unless you need to go to hospital, get back on the horse before you finish crying.” The easiest way to kill a business is through inaction. So keep moving and know that if you keep your winners and throw away your losers, it doesn’t take long to have a really solid business.

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How to Really Make Money Online – The Best 7 Reasons to Stay in Internet Marketing

May 19 2023 Published by admin under Uncategorized

Here are some reasons why you just cannot turn your face away from Internet marketing in today’s times.

1. The Internet is one of the best places in the world to market a product. The main reason for this is the worldwide exposure that can be obtained, right from the workplace.

2. Every business has a niche, i.e. a category of people that it caters to. With offline marketing methods, the advertising is more general and most of it gets wasted because it broadcasts to all people, most of who are not interested at all. Internet marketing methods help people to get at their niche market directly.

3. The cost-saving factor when you promote your business over the Internet cannot be denied at all. With methods such as submitting articles and blogging, you will not spend a single penny if you don’t want to. These are methods you can do yourself. If you wish to outsource them too, you are still doing it quite economically.

4. It is quite true that ads on the Internet will persist for much longer than any other kinds of ads. Think about TV and radio ads. These are maximum a minute long, and everyone forgets about them then. The same case is with newspapers. But Internet ads can remain forever if you want and keep bringing in interested people to your website.

5. With most methods of promotion on the Internet, the marketer can illustrate his or her knowledge about the business, such as in writing on blogs and forums or submitting informative articles about various aspects concerning the business. Readers get the impression that the marketer is credible enough to do business with.

6. If there is any method where you can make money while you are promoting your business, then Internet marketing is it. There are ways like affiliate marketing where you make money as well as promote your stuff. This is definitely not possible in offline promotions.

7. People have become much more Internet savvy than they were 5 years ago and 5 years later, they will become savvier. Today, people will first check out a product on the Internet before they decide to purchase it. In such a situation, it is extremely important to have visibility on the Internet and good reviews to go with it.

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Utilizing Smart Phones For Business Marketing

May 17 2023 Published by admin under Uncategorized

Ever experienced going back home just because you left your mobile phone?

Life has never been easier since the advent of mobile phones. This is not only true for handling personal matters but also for business transactions. Executives can receive calls even though they are not at their office; marketing professionals can contact prospects; and procurement can conveniently communicate with suppliers. These were just some of the convenience brought by mobile phones.

As time goes by, technology advances. This just means more and more features that can be utilized to boost marketing efforts for your UK business.

As of Q1 2011, 48% of mobile phones in the UK are smartphones and sales are increasing too at an insane pace. It is not long before the smartphones will not only dominate traditional mobile phones but even make them obsolete.

What does this trend mean to businesses in UK?

It is very clear that marketing directed towards smartphones would definitely reach and penetrate our target market. The next question would be, “How can this be done?”

Here are some of current features of mobile phones and corresponding advantages for business marketing.

Traditional Call and Text

Since almost everyone if not all brings their mobile phones wherever they go, then the best way to reach someone is through his / her mobile phone. Telemarketing and SMS marketing would definitely be useful to reach mobile phones.

You can pro-actively market your business by either cold calling prospects or calling sales leads from marketing companies specializing in lead generation. If you opt for cold calling, you would need a marketing list or marketing database for your target market. There are marketing companies which also offer these databases at low prices.

On the other hand, you might prefer calling leads that are already pre-qualified, interested to know more about your product or service, or interested to avail your products right away. Lead generation companies can help you with sales leads that would suit your ideal target market.

SMS marketing is one cost effective option that can be utilized even by small businesses. At a very minimal cost you can let your market know about the existence of your business, promotional offers that you have, and have continued trade from existing customers. You can either do this in-house or have it outsourced to a marketing company. Doing this in-house would still require you to have marketing lists, SMS marketing system, and a set of personnels that would pull everything together. Another option is to have it outsourced and just sit back while the hot leads roll in from the SMS marketing campaign.

Internet Connectivity

This is one significant revolution in mobile phones. Your target market can now access your site anywhere they are. Features that used to be confined on computers are now literally available at the fingertip. It’s just a click away from any smartphone. This just means that investing on Search Engine Optimization (SEO) and Email blast would now yield higher return of investment for the business.

In the a generation where almost everything could be found through search engines like Google, it is very important to have your business listed online and see to it that your website appears on top of your competitors’. This is where SEO comes in. With SEO, you could increase traffic to your website and therefore, making your presence known to those who are looking for your products or services.

On the other hand, why just wait for customers to look for you if you can initiate customer relation by regularly sending something through their email? With features nowadays which integrate email to smartphones, your emails would reach your target market faster and more effectively.

Generally speaking, one of the marketing strategies mentioned above can make a lot of difference for the growth and prosperity of your business but implementing them side-by-side would yield better results because their results reinforce each other.

There’s also two (2) ways on how you can implement them. You may choose to gather all necessary resources and implement them on your own or have them done by businesses specializing in marketing. There is no clear answer to which would be a better choice. This would depend on the expertise of your personnel (both on marketing and management), financial limitations, and available resources.

As you can see, the revolution on mobile phones offers tremendous opportunities to business marketing. Customers are just out there waiting for you. Now, will you let the opportunity pass?

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New Rules At the TMX: New Regulations for Venues and Broker Dealers Regarding Direct Market Access

May 16 2023 Published by admin under Uncategorized

The US government, through the SEC, or the Securities and Exchange Commission, has reviewed the rules governing direct market access. These new rules affect Venues and Broker Dealers in various ways and have trickled down to the Canadian market.

Direct Market access is a term that can be used to refer to electronic and digital equipment that allow buyers of securities to purchase these securities and shares by accessing them directly. The electronic and digital equipment are usually supplied and set up by independent firms. There are benefits of using this type of trading. It reduces errors that can arise due to common human mistakes that computers can take care of. The system also reduces the cost of trading by a substantial margin, especially on the buyer’s side.

The new rules affect venues and others who access the exchange directly. If a customer is able to send a request directly to the exchange via a broker or dealer, then this is going to change from now, according to the new rules. According to insiders, the rules are said to affect all orders originating from clients to the exchange using brokers. The orders may involve any equity or security such as equities, debt securities, ETFs and swaps. The rules also affect all broker dealers that allow customers’ access to the securities exchange platform such as naked, direct or through an agency brokerage firm.

These new rules introduce a couple of challenges that broker dealers need to address and find amicable solutions for. The regulations demand that broker dealers should not allow a customer to place orders that exceed their capital and credit thresholds. This should be achieved by brokers introducing and setting control levels as well as supervision of the entire process so as to ensure compliance with the regulations.

The current procedures apply to broker dealers and they are bound by securities exchange commission rules and laws. However, these rules do not apply to customers, clients and other customers. Now, broker dealers and venues of trading usually have an MPID key, or market participant identifier key that enables them access to the securities exchange and the ability to transact or place orders on behalf of their clients. Now, sometimes, the broker dealers allow their clients direct access to the securities exchange by allowing them use of the key. This is also sometimes referred to as naked access. It can easily affect the sell side of the exchange. The sell side, however, won’t be much affected by these new rules.

As these naked access trades are normally not supervised and the access is not under the jurisdiction of the Securities and Exchange Commission, it is possible for violations and other risks to be perpetrated. This is why these regulations were introduced.

The TMX group is an exchange group of businesses that deal in derivatives as well as cash markets. The TMX group also deals in various classes of assets that include energy, fixed income and equities.

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