Flett Exchange, LLC is launching its Internet New York City Taxi Medallion Marketplace in November. It will be available to everyone in the Industry.

Overview:

Flett Exchange, LLC was founded by Michael Flett, who brings to the table nineteen years of experience in commodities on the New York Mercantile Exchange. It combines the rules, similar to that of a traditional commodities exchange, and technology to create Markets. These Markets will give interested parties the ability to negotiate medallion prices to a broader audience than the traditional channels. The Flett Organization has witnessed the rapid expansion of commodity exchanges once they have embraced on-line methods and feels that the same response will be true in areas such as New York City Taxi Medallions.

What is Flett Exchange?

The Flett Exchange is an electronic marketplace, which provides a centralized meeting place and transparency for both buyers and sellers of taxi medallions. Flett Exchange will benefit both medallion owners and potential new entrants into the NYC Taxi Industry.

Independent drivers who would like to buy their own medallion will be able to place their order to buy on the Flett Exchange. They will have full control of their order to buy and be able to change it according to the market conditions that they observe.

Independent drivers who own their medallion can place an order to sell their medallion at whatever price they choose and change it as well.

Minifleet buyers and owners can act in the same fashion. All of this is done anonymously and only the other party is informed as to the counterparty’s identity after the execution.

Flett Exchange acts as a neutral party facilitating efficient buying and selling for its customers. Flett Exchange aims to be a portal for the Taxi Industry. New contacts made by Flett Exchange will be referred according to their needs to the various segments of the Industry including insurance, management and financing.

Brokers will be encouraged to use the open competitive marketplace for their clients. It is also a tool for brokers to establish new relationships when their client is matched on the exchange. Flett Exchange will give new entrants into the Taxi Industry the information they need and the ability to execute instantaneously. This type of transparency should lead to deep pools of liquidity in the Taxi Medallion Market.

How is it different?

The business model is based on the way that traditional commodities exchanges have worked in which they:

Flett Exchange takes it one step further and lets its participants self tailor their bids and offers. The combination of technology and time tested exchange rules will give Flett Exchange the ability to offer competitive centralized marketplaces for commodities such as taxi medallions.

How do I use it?

Potential taxi medallion buyers and sellers will access Flettexchange.com and find the medallion contract that they are interested in. There will initially be five Taxi Medallion Markets:

The website lists the Medallion Contract specifications. It will also be a portal for people new to the Industry and can educate them about it. Anyone can view the current bids and offers for each Medallion Contract as well as view past prices as they become available. There will be up to date market reports written by exchange staff describing the latest market conditions.

Interested parties will be able to easily open up a new account over the phone directly with an authorized Flett Exchange representative. They will be screened for suitability in the New York City Taxi Medallion industry. TLC Rules will be reviewed and each participant will agree to obtain the needed clearances from the TLC such as Standards and Criteria for Ownership. All buyers and sellers MUST take physical delivery (transfer the medallion at the TLC) of the medallion.

Buyers and sellers are required to make a “good faith deposit” to further ensure that they carry out the terms of the contracts that they agree upon. In case of default this “good faith deposit” may be forfeited and awarded to the opposite party to the trade if they were adversely affected.

Decisions are made by an impartial senior Flett Exchange officer who is an expert in medallion prices and is familiar with protocol and accepted business practices in the industry.

Once approved by Flett Exchange the customer can log on and participate in the live marketplace. They can place buy and sell orders and change the price as many times as they choose according to what they see the other participants doing.

There is a “chat” function which enables one to contact the other traders. All is done anonymously. The marketplace is totally transparent so if two parties are negotiating contracts any other user on the system can negotiate at the same time with them. Once two parties agree to the terms of their contract the trade is executed instantly and a Flett Exchange employee will help facilitate the closing of the deal. This includes following up with all TLC requirements all the way to the closing at the TLC.

For new users to the Taxi Medallion Industry an attorney who is familiar with closings will be recommended. Upon a successful closing at the TLC and the agreement by both buyer and seller that the contract was completed satisfactorily, 2% of the purchase price is charged to both buyer and seller as commission to Flett Exchange.

Use the power of Flett Exchange:

On Market Launch this November you can learn all about the rules of the exchange at www.flettexchange.com

This article is not a solicitation to buy or sell taxi medallions. Interested parties are encouraged to consult an investment advisor and an accountant before deciding to buy or sell Taxi Medallions. Flett Exchange, LLC is a licensed and bonded Taxicab Medallion Broker by the Taxi Limousine Commission Lic. # R0064