MMTec Stock

MMTec, Inc. provides comprehensive, Internet-based technology services and solutions.

The company provides comprehensive, Internet-based technology services and solutions to the Chinese language speaking hedge funds, mutual funds, registered investment advisors, proprietary trading groups, and brokerage firms engaging in securities market transactions and settlements globally. The company helps these financial institutions to accelerate their integration into the overseas market by offering complete suite trading solutions, including services, such as fund establishment, issuance, custody, transaction and settlement.

The company’s main operations are conducted through and by the People’s Republic of China (PRC or China, excluding Macau, Taiwan, and Hong Kong) based operating entity, Gujia (Beijing) Technology Co., Ltd. (Gujia), based in Beijing, China.

The company conducts its business through and based on distinct yet integrated business systems designed to provide support for Securities Dealers Trading System (securities registration and clearing, account management, risk management, quick trading and execution, and third party access middleware); Private Fund Investment Management System (multi-account management, fund valuation, risk management, quantitative trading access, and liquidation and requisition management); and Mobile Transaction Individual Client System and PC Client System (Apple IOS, Android, PC, and Web).

The company assists PRC-based financial institutions in taking part in the overseas securities trading markets by providing them with comprehensive Internet-based securities solutions. These PRC financial institutions, along with Hong Kong broker-dealer customers may ‘white label’ the company’s trading interface (i.e., put their logos on it, make its trading interface available to their customers without referencing its name, as if it were their in house product), or they can select services from among its modular functionalities, such as order routing, trade reporting or clearing on specific products or exchanges where they may not have up-to-date technology to offer their customers a comprehensive range of services and products. The company also helps Chinese language speaking hedge funds, mutual funds, proprietary trading groups to speed up their integration with the overseas market and offers them additional services, such as fund establishment, issuance, custody, transaction, and settlement.

The company also provides a series of IR solutions service for China Concepts Stock companies, helps maintain the relationship between listed companies and the company’s equity, debt investors or potential investors. The company provides its clients across all industries, sectors, and regions with strategic actionable intelligence and visibility into the capital markets for the long term. The company used internally designed and built system with the U.S. brokerage license and the Cayman fund management qualification to form a series of MOM funds, with the main goal of discovering small and medium-sized institutional investors and helping them set up the fund to issue securities fund products.

In 2019, the company added financial advisory and investment banking business line to the roster of services it offers to its customers. Under this new business line, the company anticipates providing financial advising and investment banking services, including among others, investments, restructuring, initial public offering (IPO) and secondary offering guidance, and venture funding advice, for PRC-based small and medium-sized enterprises from various industries that seek access to the U.S. capital markets. Specifically, the company intends to assist its customers in financings and capital formation at different stages of their growth and development.

In 2020, the company used internally designed and built system with the U.S. brokerage license and the Cayman fund management qualification to form a series of MOM funds, with the main intention of discovering small and medium-sized institutional investors and helping them set up the fund to issue securities fund products.

In 2021, the company applied for a license for dealing in securities, advising on securities and asset management in Hong Kong and continued to increase its sales force in the fund management services business, market data services business, and broker-dealer business. In turn, the company reduces retail business gradually because of the Chinese government’s requirements for cross-border data security supervision.

The company announced that commencing March 6, 2023, it relocated its operations from Beijing to Hong Kong Special Administrative Region.

The company also provides a complete product line from ENT, PTN to mobile end trading platform and PC-side trading platform, thus covering most of the operating systems required by broker-dealers and private equity funds; a stable market, trading system tested and relied for a period of time; rapid product development and iteration - it can develop products, which meet the customer’s latest demands; and understanding of financial markets and information technology development.

System and Solutions

Securities Dealers Trading Support System

The Electric Trading Network Counter Management System (ETN) supports the company’s institutional customers. The system consists of the following business modules:

The company’s account management system that provides customers with a highly adaptable multi-account management system that systematically manages multiple accounts, executes simultaneous transactions among the accounts and guarantees efficiency and fairness in transactions.

The company’s risk control system conducts comprehensive monitoring in the transaction execution process from initial position, decision-making to execution by setting the warning line and open line. It evaluates dynamic control of risks presented by scanning all asset units every 30 minutes. The system provides one-click opening and one-click query functions to facilitate operations by the risk control personnel, so that risks are controlled in a more timely and efficient manner. It supports multi-dimensional risk control and eliminates the transaction of highly risky stocks by setting up a stock pool in which such highly risky stocks are stored.

The company’s fast transaction system features in one-click booking, fast transaction and combined booking to rapidly and efficiently integrate the centralized transaction system to ensure efficiency and accuracy of transactions.

Private Fund Investment Management System

The Private Fund Trading Network Management System (PTN) is an in-house developed system that supports institutional customers. The system consists of the following modules:

The company’s Account Management System - The PTN investment management system sets up account management functions, such as risk control, clearing, accounting, reporting, and trading, etc. for fund operating and investment.

The company’s Fund Valuation System - This system provides a package of valuation services, including valuation validation, investment monitoring, and information disclosure, with general and grouped valuation options provided to users upon demands.

The company’s Fund Risk Management Platform - This system provides all-round risk control management for users in the entire process from transaction, compliance to risk control on three dimensions: transaction risk control, process risk control, and risk control setting.

The company’s Quantitative Transaction Access – This system provides the user with efficient and fast quantitative transaction access modes, including the standardized API and customized H5, SDK, APP, PC, to ensure rapid development and operation.

Mobile Transaction Individual Client System and PC Client System - As a result of the company’s internal research and development efforts and upgrades, it has developed a mobile application for business transaction and social networking for its broker-dealer customers, and an efficient and fast transaction-only PC client system for their individual investor customers. This system provides the end users with real time comprehensive market information (bid/ask price, volume, breaking news, etc.) access through dedicated cross-border lines. The company utilizes dedicated Sino-U.S. cross-border lines to provide end users with high-speed and stable market data, help them to apply for market licenses, and provide integrated market information-related solutions to the users, who may choose to pay monthly or yearly. The company also provides end users with testing and debugging services.

Financial Technology Solutions

One-Stop Broker Technology System Solution – The company provides the following solutions to its broker customers, including modular website building, online account opening system; modular PC-based trading clients and mobile APP trading clients for retail customer; market data center to help them apply for exchange quotations; ETN investment management system, backstage ERP system and commission clearing and settlement system; and assistance to deployment system and undertaking operation and maintenance services.

One-Stop Private Fund Investment Management Fund Solution – For small and medium-sized private funds with a management scale of more than $1 million and less than $100 million, the company provides the following one-stop establishment and investment trading solutions to assist with establishing private equity funds, registration, administration and management of such funds; building PTN investment management system, deployment of investment transaction, fund management, risk control, ERP, and other modules; opening trading accounts, handling valuation, liquidation and investment redemptions; and marketing.

Strategy

The company’s key market strategies include providing free, flexible, and open securities technology services; minimizing technical barriers to securities trading; utilizing cloud computing technologies, open financial platforms, and more diversified financial product; supporting PRC private equity funds to participate in overseas markets; and focusing on the Chinese market, and all the markets that use Chinese as the native language.

With the acquisition of MMBD Trading and MM Global in the United States, the company is able to provide better services to non-U.S. small and medium-sized brokerage firms to access the U.S. market, and also to the small and medium-sized private equity funds with deeper understanding of their needs.

Marketing

The company intends to offer these and other similarly situated financial services providers with a full spectrum of technical system solutions. Specifically, the company intends to open an office in Hong Kong for such future customers and retain local sales force to promote its services in the market and increase its brand exposure. In addition, the company intends to increase its sales and marketing teams in Shanghai and Beijing to offer its technical solutions to the PRC private fund industry participants. The company also intends to hold conference, educational, and other events to promote its brand recognition.

Intellectual Property Rights

The company has applied for software copyright protection in China covering its software technology. The company applied to National Copyright Administration of the P.R.C. for 27 software copyrights, which was approved on June 28, 2018; March 14, 2019; and September 1, 2021.

Research and Development

For the year ended December 31, 2022, the company’s research and development expenses were $828,869.

Competition

Most of the large private funds use Bloomberg system, but the company focuses on the private equity funds with assets management amount between $1 million to $200 million, the company’s main competitor in this field is Hundsun Technologies.

The company also competes with OP Investment Management Ltd. and AssetMark Financial Holdings, Inc.

History

MMTec, Inc. was founded in 2018. The company was incorporated in 2018 under the laws of the British Virgin Islands.