Trading Desk: News Briefs

Posted: 11/2000

News Briefs

* To guide its expansion in North America, the Asia Capacity Exchange Ltd.
(ACE, has appointed
Andrew Lipman to its board of directors. Lipman is vice chairman of Swidler
Berlin Shereff Friedman LLP (
and senior partner of the firm’s telecommunications group. Lipman and ACE CEO
Paula Brillson were former colleagues at MFS Telecommunications (now WorldCom
Inc., in the late 1980s.

During the last two years, Lipman has been involved in mergers of the world’s
largest telecom carriers. He obtained the first competitive local service and
interconnection agreements in continental Europe and obtained the first
competitive fiber network application in Japan. He also serves as general
counsel to the International Teleconferencing Association (now the Interactive
Multimedia and Collaborative Communications Alliance,
and as legislative/regulatory counsel to the International Satellite Users
Association. He co-founded the Association for Local Telecommunications Services
(ALTS,, the U.S. national trade
association for CLECs.

* Minutes marketplace (
announced in mid-September that its sales were expected to exceed 20 million
minutes per month by year-end. President and founder Richard W. Kates attributes
the growth to a realization among telecom companies of the power of wholesale
distribution on an e-commerce platform.

CCHA is a nonprofit trading association that oversees the online exchange. It
provides fulfillment and financial clearing. Its members currently trade
international routes on long-distance minutes with central switching provided by
the exchange and will soon trade bandwidth.

CCHA is a member-run minutes marketplace with industry professionals making
key decisions including products traded, rules of trading and membership ethics.
In addition, CCHA guarantees payment through a collateral system as used by
established commodity exchanges.

* Commodities marketplaces, such as those for telecom capacity, business
services and integration services, are expected to be one of three e-market
business models that survive, according to research published this summer by Gartner
Group Inc.

"Commodities marketplaces will replace some of today’s inefficient
markets that protect profit margins through asymmetric information, inefficient
spot markets and excess product auctions. Those marketplaces will also allow for
speculation of commodities and futures in product and service categories where
that is not feasible today," analysts say. "Gartner predicts that for
supplier participating in commodity marketplaces, marketing will radically
evolve, and price hedging and capacity management and sales will become core
success factors."

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