JUST ANOTHER IPV4 BROKER?

‘Just another IPV4 broker’ you might think. Well I don’t think so. Firstly, one needs to understand that an exchange and a broker are two different entities. An established exchange will automatically attract Best IPv4 Broker.

How big an exchange this will ever be is hard to say as nobody knows how long it will take before demand for IPV4 will diminish due to increasing integration of IPV6. I have heard or read guestimates between 5 and 20 years. (This blog is not aimed at focusing on IPv6 integration rather than purchasing more IPv4s, if you hadn’t noticed yet)

The bigger an exchange will become, the lower the commission rates required for being a self-supporting entity will be. And with that happening an exchange will become a more viable option for a broker to use in order to increasingly fill buy and sell orders for its clients.

In a classic scenario of a stock market , brokers and banks are at one end and the market makers on the other end.

Stocks are always traded via the market makers by the brokers and banks on behalf of the end client. In Amsterdam where the first stock exchange of its kind in the world was founded, the market makers were all located against the outer walls of the floor and corners. For this reason they were called ‘hoekman’ which translates to cornerman. There is competition between market makers in a number of fixed stocks they trade in.

For large stocks that would have been 3 different market makers and smaller stocks too.

The trading floor would be crowded with market makers who have their order books to negotiate with each other and come to a new quote price that would be used to trade the largest number of share displayed on the board.

On busy days these meets were very frequent. More shares traded meant more commission for the market maker. In order to influence the next quote on the board in a direction that would lead to the maximum number of shares traded the market maker would sometimes buy or sell from the market maker who is the competitor to get the desired price.

This buying or selling should not be mistaken for trying to make a profit in any other way than commission. Often the market maker holds on to shares or maintains a short position or make profit, but the ultimate goal is to keep the market fluid. At the end of the day usually all positions were closed after a hopefully profitable day.

Presently, this does not happen and options trading is done on the old floor in Amsterdam.

A different game. Everything is automated and the ‘hoekman’ is a relic of the past. The principles however stay the same. The exact principles are modelled for IPv4.deals, IPv4 Broker Service Provider.

However, IPv4 blocks differ from stocks and shares.

It is likely that the IPv4 price may see a steady rise over time due to highly volatile financial markets.

That does not mean there is no need for a system that will make buying and selling easier where pricing is more transparent. At the moment most participants don’t have a clue about what’s going on. Some sellers are selling at very low rates while others set their expectations high and nothing moves. Sending lots of emails to people with listings on the RIR portals is very inefficient.

The minimum price is mostly ignored according to some.

At the moment while writing this article the total number of IPs available for transfer is 524.032 as stated on the RIPE LIR Portal.However, the IPv4 addresses transfer request stands at 27 million, 326 thousand and 720, which is huge.

And these numbers are hardly changing.

And these correspond to the region where RIPE IPv4 brokers deal, you can add more addresses from the other regions where ARIN IPv4 brokers and APNIC IPv4 brokers operate.

This could be due to a number of reasons but one of them is for certain perception of value.

Only when the IPv4 price is at its highest and IPv6 transition will seem cheaper and a better option, IPv6 transition will take place.

It will be a strong motivator. For people who want to buy or sell the 27 million IPs, there is not so good news for them, IPv4 prices will not go down, so you might as well go for IPv6 transition.

Leave a Reply

Your email address will not be published. Required fields are marked *