Complex Event Analysis - Report

Key Focus

  • Another wholly-owned subsidiary of tZERO, tZERO Markets, LLC ("tZERO Markets"), is in the process of seeking regulatory approvals from FINRA and the SEC and, subject to such approval, intends to offer a website and mobile application that allows retail customers to conduct self-directed trading of conventional and digital securities, along with other activities.
    In addition, tZERO also maintains certain non-blockchain businesses, including the broker-dealer activities of its subsidiaries, tZERO ATS, LLC and SpeedRoute, LLC ("SpeedRoute")
  • On May 27, 2020, we received a subpoena from the SEC requesting further information regarding the alternative trading system run by tZERO's ATS, LLC. We have responded to all subpoenas and requests for information and will continue to cooperate fully with the SEC in connection with its investigations and information requests.
    tZERO's broker-dealer subsidiaries are subject to extensive regulatory requirements under federal and state laws and regulations and self-regulatory organization ("SRO") rules
  • To achieve this, tZERO ATS, LLC is in discussions with several broker-dealers interested in subscribing to the tZERO ATS, which would enable their customers to trade digital securities traded on the ATS. tZERO also continues to develop new trading venues for digital securities such as BSTX as it seeks regulatory approval for a U.S. national exchange facility, as well as working to launch tZERO Markets (subject to regulatory approval) to support further investors who wish to access such trading venues.
    Create a world class trading experience - tZERO continues to seek opportunities to enhance the tZERO Technology Stack and improve investors'trading experience for all types of financial products
  • These investments include the alternative trading system (the "tZERO ATS") run by its wholly-owned subsidiary, tZERO ATS, LLC, which provides a licensed venue for matching buy and sell orders to its broker-dealer subscribers, including for the trading of digital securities, and its joint venture with BOX Digital Markets LLC ("BOX Digital"), intended to develop a U.S. national securities exchange facility with regulatory approvals enabling it to support trading in a type of digital security called a security token

    • Momentum supporting factors

  • (digital,trading,tzero)
  • (digital,venture)
  • (digital,tzero,venture)
  • (digital,trade)
  • (digital,trade,tzero)
  • (technology_stack,trading)
  • (digital,trading)
  • (technology,trading)

    • Challenge supporting factors

  • (ats,regulatory,trading,tzero)
  • (ats,digital,trading,tzero)
  • (ats,markets,trading,tzero)
  • (ats,broker-dealer,trading,tzero)
  • (ats,speedroute,trading,tzero)
  • (ats,regulatory,tzero)
  • (markets,regulatory,tzero)
  • (ats,regulatory,trading)
  • (regulatory,trading)
  • (regulatory,trading,tzero)

    • Work-in-progress supporting factors

  • (ats,digital,trading)
  • (digital,trading)
  • (ats,digital,tzero)
  • (broker-dealer,digital,regulatory,tzero)
  • (digital,regulatory,tzero)
  • (ats,digital,trading,tzero)
  • (digital,trading,tzero)
  • (digital,regulatory)
  • (ats,regulatory,trading,tzero)
  • (broker-dealer,digital)

    • Complex Event Time Series Summary - REPORT


    Time PeriodChallengeMomentumWIP
    Report60.06 3.57 36.37

    High Level Abstraction (HLA) combined

    High Level Abstraction (HLA)Report
    (1) (ats,regulatory,trading,tzero)100.00
    (2) (ats,digital,trading,tzero)80.53
    (3) (ats,broker-dealer,trading,tzero)60.85
    (4) (ats,markets,trading,tzero)45.12
    (5) (ats,regulatory,tzero)43.71
    (6) (digital,trading,tzero)37.91
    (7) (ats,trading,tzero,wholly-owned)36.61
    (8) (ats,speedroute,trading,tzero)34.87
    (9) (digital,trading)28.90
    (10) (markets,regulatory,tzero)28.74
    (11) (ats,digital,trading)28.63
    (12) (broker-dealer,regulatory,trading,tzero)28.15
    (13) (ats,digital,tzero)28.09
    (14) (broker-dealer,digital,regulatory,tzero)27.87
    (15) (digital,regulatory,tzero)27.49
    (16) (ats,broker-dealer,trading)26.52
    (17) (digital,regulatory)26.03
    (18) (broker-dealer,trading)25.98
    (19) (ats,regulatory,trading)25.92
    (20) (regulatory,trading)25.65
    (21) (ats,broker-dealer,tzero)25.43
    (22) (approvals,ats,trading,tzero)24.30
    (23) (regulatory,trading,tzero)24.19
    (24) (markets,trading)24.13
    (25) (digital,markets)24.08
    (26) (ats,markets,trading)23.97
    (27) (ats,markets,tzero)23.48
    (28) (broker-dealer,markets,tzero)23.32
    (29) (digital,markets,tzero)23.10
    (30) (markets,trading,tzero)22.07
    (31) (broker-dealer,digital)21.96
    (32) (broker-dealer,digital,tzero)20.93
    (33) (registered,tzero)20.50
    (34) (markets,tzero,wholly-owned)19.85
    (35) (ats,registered,trading)19.69
    (36) (broker-dealer,trading,tzero)19.58
    (37) (digital,wholly-owned)19.47
    (38) (ats,trading,wholly-owned)19.36
    (39) (trading,wholly-owned)19.25
    (40) (ats,tzero,wholly-owned)19.20
    (41) (registered,trading)19.14
    (42) (broker-dealer,tzero,wholly-owned)19.09
    (43) (digital,tzero,wholly-owned)18.98
    (44) (ats,registered,tzero)18.71
    (45) (broker-dealer,regulatory,tzero,wholly-owned)18.66
    (46) (regulatory,tzero,wholly-owned)18.44
    (47) (trading,tzero,wholly-owned)18.06
    (48) (ats,speedroute,trading)18.00
    (49) (ats,speedroute,tzero)17.68
    (50) (digital,investors)17.57
    (51) (speedroute,trading,tzero)17.08
    (52) (digital,security)16.97
    (53) (ats,security,trading)16.87
    (54) (digital,investors,tzero)16.70
    (55) (ats,security,tzero)16.54
    (56) (broker-dealer,security,tzero)16.49
    (57) (digital,security,tzero)16.38
    (58) (broker-dealer,regulatory,security,tzero)16.32
    (59) (regulatory,security,tzero)16.05
    (60) (ats,security,trading,tzero)15.94
    (61) (broker-dealer,federal,regulatory,tzero)15.78
    (62) (security,trading,tzero)15.73
    (63) (ats,registered,trading,tzero)14.91
    (64) (registered,trading,tzero)14.59
    (65) (ats,investors,trading)14.37
    (66) (broker-dealer,businesses,regulatory,tzero)14.21
    (67) (investors,trading)14.10
    (68) (ats,investors,tzero)13.88
    (69) (investors,markets,tzero)13.72
    (70) (ats,investors,trading,tzero)13.50
    (71) (investors,trading,tzero)13.18
    (72) (approvals,digital)13.07
    (73) (approvals,digital,tzero)12.91
    (74) (authorities,tzero)12.80
    (75) (authorities,broker-dealer,regulatory,tzero)12.74
    (76) (approvals,broker-dealer,regulatory,tzero)12.74
    (77) (approvals,trading,tzero)12.36
    (78) (authorities,regulatory,tzero)11.98
    (79) (ats,digital)11.66
    (80) (compliance,regulatory,tzero)11.12
    (81) (ats,broker-dealer,regulatory,tzero)10.36
    (82) (regulatory,services,tzero)10.09
    (83) (broker-dealer,tzero,various)8.68
    (84) (businesses,markets,tzero)8.57
    (85) (broker-dealer,regulatory,tzero,various)8.46
    (86) (regulatory,tzero,various)8.24
    (87) (broker-dealer,federal,tzero)8.08
    (88) (broker-dealer,businesses,tzero)7.43
    (89) (services,tzero)6.13
    (90) (broker-dealer,registered,tzero)5.69
    (91) (digital,tzero,venture)5.53
    (92) (digital,trade,tzero)4.77
    (93) (capital,markets,tzero)4.72
    (94) (medici_ventures,tzero)4.07
    (95) (markets,technologies,tzero)3.85
    (96) (ats,sros,trading)3.31
    (97) (digital,venture)2.87
    (98) (digital,trade)2.60
    (99) (markets,trade,tzero)2.28
    (100) (markets,tzero,verify_investor)0.92
    (101) (technology_stack,trading)0.81
    (102) (loss,tzero)0.81
    (103) (cash,tzero)0.76
    (104) (technology,trading)0.27
    (105) (sros,trading)0.05

    Complex Event Analysis - REPORT

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    Supporting narratives:

    • momentum (Read more)
      • Throughout this report we refer to "digital securities" which are conventional uncertificated securities where the issuer arranges for a digital "courtesy carbon copy" of the transfer agent's share registry to be viewable on the blockchain and may also be referred to as "digitally-enhanced securities".

        tZERO also supports the demand for and adoption of such assets by developing the tZERO Technology Stack for use by regulated venues on which those digital securities can trade, as well as investing in subsidiaries and joint venture entities that own and operate such trading venues
      • High Level Abstractions:
        • (digital,trade,tzero)
        • (digital,trade)
        • (digital,trading,tzero)
        • (technology_stack,trading)
        • Inferred entity relationships (4)
        • (trading,tzero,wholly-owned) [inferred]
        • (digital,trading) [inferred]
        • (digital,trade) [inferred]
        • (digital,trade,tzero) [inferred]

    • momentum (Read more)
      • Throughout this report we refer to "digital securities" which are conventional uncertificated securities where the issuer arranges for a digital "courtesy carbon copy" of the transfer agent's share registry to be viewable on the blockchain and may also be referred to as "digitally-enhanced securities".

        tZERO also supports the demand for and adoption of such assets by developing the tZERO Technology Stack for use by regulated venues on which those digital securities can trade, as well as investing in subsidiaries and joint venture entities that own and operate such trading venues.
      • High Level Abstractions:
        • (digital,tzero,venture)
        • (digital,venture)
        • Inferred entity relationships (1)
        • (digital,tzero,wholly-owned) [inferred]

    • momentum (Read more)
      • tZERO focuses on developing the supply side of this marketplace by creating, marketing and licensing a suite of technologies (the "tZERO Technology Stack") that enables issuers to issue, and relevant regulated market participants to support the issuance, trading, clearance and settlement of, digital securities. Throughout this report we refer to "digital securities" which are conventional uncertificated securities where the issuer arranges for a digital "courtesy carbon copy" of the transfer agent's share registry to be viewable on the blockchain and may also be referred to as "digitally-enhanced securities".

        tZERO also supports the demand for and adoption of such assets by developing the tZERO Technology Stack for use by regulated venues on which those digital securities can trade, as well as investing in subsidiaries and joint venture entities that own and operate such trading venues
      • High Level Abstractions:
        • (digital,trading)
        • Inferred entity relationships (1)
        • (digital,trading,tzero) [inferred]

    • momentum (Read more)
      • Additionally, tZERO is enhancing the tZERO Technology Stack to support third party issuance protocols in order to support securities which have been digitally enabled by other technology companies and is cultivating relationships with established investment banks to help prospective issuers raise capital, prior to tokenizing and trading on the tZERO ATS.
        Enhance liquidity - tZERO ATS is focused on enhancing liquidity
      • High Level Abstractions:
        • (technology,trading)
        • (technology_stack,trading)

    • challenge (Read more)
      • Another wholly-owned subsidiary of tZERO, tZERO Markets, LLC ("tZERO Markets"), is in the process of seeking regulatory approvals from FINRA and the SEC and, subject to such approval, intends to offer a website and mobile application that allows retail customers to conduct self-directed trading of conventional and digital securities, along with other activities.
        In addition, tZERO also maintains certain non-blockchain businesses, including the broker-dealer activities of its subsidiaries, tZERO ATS, LLC and SpeedRoute, LLC ("SpeedRoute")
      • High Level Abstractions:
        • (ats,markets,trading)
        • (ats,digital,trading,tzero)
        • (ats,markets,tzero)
        • (ats,trading,tzero,wholly-owned)
        • (approvals,ats,trading,tzero)
        • (broker-dealer,markets,tzero)
        • (digital,markets)
        • (businesses,markets,tzero)
        • (markets,trading)
        • (ats,broker-dealer,trading,tzero)
        • (ats,regulatory,trading,tzero)
        • (digital,markets,tzero)
        • (ats,markets,trading,tzero)
        • (markets,tzero,wholly-owned)
        • (broker-dealer,regulatory,trading,tzero)
        • (markets,regulatory,tzero)
        • (markets,trading,tzero)
        • (broker-dealer,businesses,regulatory,tzero)
        • Inferred entity relationships (32)
        • (ats,digital,tzero) [inferred]
        • (ats,broker-dealer,regulatory,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (ats,markets,trading) [inferred]
        • (digital,trading) [inferred]
        • (ats,digital) [inferred]
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (broker-dealer,businesses,tzero) [inferred]
        • (digital,markets,tzero) [inferred]
        • (digital,trading,tzero) [inferred]
        • (ats,regulatory,tzero) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (broker-dealer,trading,tzero) [inferred]
        • (ats,trading,tzero,wholly-owned) [inferred]
        • (broker-dealer,regulatory,tzero,various) [inferred]
        • (markets,tzero,verify_investor) [inferred]
        • (ats,markets,trading,tzero) [inferred]
        • (digital,markets) [inferred]
        • (ats,regulatory,trading) [inferred]
        • (ats,digital,trading) [inferred]
        • (ats,broker-dealer,trading) [inferred]
        • (broker-dealer,trading) [inferred]
        • (markets,trading) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (ats,trading,wholly-owned) [inferred]
        • (ats,broker-dealer,tzero) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (markets,trading,tzero) [inferred]
        • (regulatory,trading) [inferred]
        • (markets,tzero,wholly-owned) [inferred]
        • (ats,markets,tzero) [inferred]
        • (regulatory,trading,tzero) [inferred]

    • challenge (Read more)
      • To achieve this, tZERO ATS, LLC is in discussions with several broker-dealers interested in subscribing to the tZERO ATS, which would enable their customers to trade digital securities traded on the ATS. tZERO also continues to develop new trading venues for digital securities such as BSTX as it seeks regulatory approval for a U.S. national exchange facility, as well as working to launch tZERO Markets (subject to regulatory approval) to support further investors who wish to access such trading venues.
        Create a world class trading experience - tZERO continues to seek opportunities to enhance the tZERO Technology Stack and improve investors'trading experience for all types of financial products
      • High Level Abstractions:
        • (digital,investors)
        • (ats,regulatory,trading,tzero)
        • (digital,investors,tzero)
        • (investors,trading)
        • (ats,digital,trading,tzero)
        • (ats,regulatory,tzero)
        • (ats,markets,trading,tzero)
        • (digital,trade,tzero)
        • (markets,trade,tzero)
        • (investors,markets,tzero)
        • (ats,investors,tzero)
        • (investors,trading,tzero)
        • (ats,investors,trading,tzero)
        • (ats,investors,trading)
        • Inferred entity relationships (27)
        • (ats,digital,tzero) [inferred]
        • (markets,tzero,verify_investor) [inferred]
        • (ats,regulatory,trading,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (ats,markets,trading) [inferred]
        • (digital,trading) [inferred]
        • (ats,regulatory,trading) [inferred]
        • (investors,trading,tzero) [inferred]
        • (ats,digital) [inferred]
        • (ats,digital,trading) [inferred]
        • (ats,investors,tzero) [inferred]
        • (markets,trading) [inferred]
        • (ats,investors,trading) [inferred]
        • (ats,investors,trading,tzero) [inferred]
        • (digital,trade) [inferred]
        • (digital,trading,tzero) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (investors,trading) [inferred]
        • (ats,regulatory,tzero) [inferred]
        • (markets,trading,tzero) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (regulatory,trading) [inferred]
        • (markets,tzero,wholly-owned) [inferred]
        • (digital,investors) [inferred]
        • (ats,markets,tzero) [inferred]
        • (digital,investors,tzero) [inferred]
        • (regulatory,trading,tzero) [inferred]

    • challenge (Read more)
      • On May 27, 2020, we received a subpoena from the SEC requesting further information regarding the alternative trading system run by tZERO's ATS, LLC. We have responded to all subpoenas and requests for information and will continue to cooperate fully with the SEC in connection with its investigations and information requests.
        tZERO's broker-dealer subsidiaries are subject to extensive regulatory requirements under federal and state laws and regulations and self-regulatory organization ("SRO") rules
      • High Level Abstractions:
        • (ats,broker-dealer,trading,tzero)
        • (ats,regulatory,trading,tzero)
        • (broker-dealer,trading,tzero)
        • (ats,regulatory,trading)
        • (ats,regulatory,tzero)
        • (ats,broker-dealer,tzero)
        • (ats,broker-dealer,trading)
        • (broker-dealer,trading)
        • (regulatory,trading)
        • (ats,broker-dealer,regulatory,tzero)
        • (broker-dealer,regulatory,trading,tzero)
        • (regulatory,trading,tzero)
        • Inferred entity relationships (20)
        • (ats,broker-dealer,regulatory,tzero) [inferred]
        • (broker-dealer,regulatory,trading,tzero) [inferred]
        • (ats,regulatory,trading,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (broker-dealer,tzero,wholly-owned) [inferred]
        • (ats,regulatory,trading) [inferred]
        • (ats,broker-dealer,trading) [inferred]
        • (broker-dealer,trading) [inferred]
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (ats,broker-dealer,tzero) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (ats,regulatory,tzero) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (broker-dealer,trading,tzero) [inferred]
        • (regulatory,trading) [inferred]
        • (ats,broker-dealer,trading,tzero) [inferred]
        • (broker-dealer,tzero,various) [inferred]
        • (broker-dealer,regulatory,tzero,various) [inferred]
        • (regulatory,trading,tzero) [inferred]

    • challenge (Read more)
      • In addition, tZERO ATS, LLC owns and operates an alternative trading system registered with the SEC. Each of SpeedRoute and tZERO ATS, LLC is subject to regulation, examination, investigation, and disciplinary action by the SEC, FINRA, and state securities regulators, as well as other governmental authorities and SROs with which it is registered or licensed or of which it is a member
      • High Level Abstractions:
        • (registered,trading)
        • (ats,registered,tzero)
        • (ats,registered,trading,tzero)
        • (ats,speedroute,tzero)
        • (registered,tzero)
        • (ats,speedroute,trading)
        • (ats,registered,trading)
        • (registered,trading,tzero)
        • (ats,speedroute,trading,tzero)
        • (speedroute,trading,tzero)
        • Inferred entity relationships (11)
        • (registered,trading,tzero) [inferred]
        • (ats,registered,trading,tzero) [inferred]
        • (ats,registered,trading) [inferred]
        • (ats,registered,tzero) [inferred]
        • (registered,trading) [inferred]
        • (ats,speedroute,trading) [inferred]
        • (ats,speedroute,trading,tzero) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (speedroute,trading,tzero) [inferred]
        • (registered,tzero) [inferred]
        • (ats,speedroute,tzero) [inferred]

    • challenge (Read more)
      • Another wholly-owned subsidiary of tZERO, tZERO Markets, LLC ("tZERO Markets"), is in the process of seeking regulatory approvals from FINRA and the SEC and, subject to such approval, intends to offer a website and mobile application that allows retail customers to conduct self-directed trading of conventional and digital securities, along with other activities.
        In addition, tZERO also maintains certain non-blockchain businesses, including the broker-dealer activities of its subsidiaries, tZERO ATS, LLC and SpeedRoute, LLC ("SpeedRoute").
      • High Level Abstractions:
        • (ats,speedroute,trading,tzero)
        • (ats,regulatory,tzero)
        • Inferred entity relationships (8)
        • (ats,speedroute,trading) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (ats,regulatory,trading) [inferred]
        • (ats,regulatory,trading,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (speedroute,trading,tzero) [inferred]
        • (ats,speedroute,tzero) [inferred]

    • challenge (Read more)
      • As previously disclosed, tZERO's broker-dealer subsidiaries are currently undergoing various examinations, inquiries, and/or investigations undertaken by various regulatory authorities, which may result in financial and other settlements or penalties
      • High Level Abstractions:
        • (broker-dealer,tzero,various)
        • (broker-dealer,regulatory,tzero,various)
        • (regulatory,tzero,various)
        • Inferred entity relationships (6)
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (broker-dealer,regulatory,trading,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (broker-dealer,tzero,wholly-owned) [inferred]

    • challenge (Read more)
      • On May 27, 2020, we received a subpoena from the SEC requesting further information regarding the alternative trading system run by tZERO's ATS, LLC. We have responded to all subpoenas and requests for information and will continue to cooperate fully with the SEC in connection with its investigations and information requests.
        tZERO's broker-dealer subsidiaries are subject to extensive regulatory requirements under federal and state laws and regulations and self-regulatory organization ("SRO") rules.
      • High Level Abstractions:
        • (broker-dealer,federal,tzero)
        • (broker-dealer,federal,regulatory,tzero)
        • Inferred entity relationships (5)
        • (broker-dealer,federal,tzero) [inferred]
        • (federal,regulatory) [inferred]
        • (broker-dealer,federal,regulatory,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]

    • challenge (Read more)
      • Any significant failure by tZERO's broker-dealer subsidiaries to satisfy regulatory authorities that they are in compliance with all applicable rules and regulations could have a material adverse effect on tZERO and on us.
        tZERO's subsidiary, tZERO Crypto, Inc, is registered as or is applying to become a money transmitter (or its equivalent) in many states and is subject to extensive regulatory requirements applicable to money services businesses, including the requirements of the Financial Crimes Enforcement Network of the U.S. Department of the Treasury ("FinCEN"), anti-money laundering requirements, know-your-customer requirements, record-keeping, reporting and capital and bonding requirements, and inspection by state and federal regulatory agencies.
      • High Level Abstractions:
        • (broker-dealer,federal,regulatory,tzero)
        • Inferred entity relationships (4)
        • (broker-dealer,federal,tzero) [inferred]
        • (federal,regulatory) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]

    • challenge (Read more)
      • Any significant failure by tZERO's broker-dealer subsidiaries to satisfy regulatory authorities that they are in compliance with all applicable rules and regulations could have a material adverse effect on tZERO and on us.
        tZERO's subsidiary, tZERO Crypto, Inc, is registered as or is applying to become a money transmitter (or its equivalent) in many states and is subject to extensive regulatory requirements applicable to money services businesses, including the requirements of the Financial Crimes Enforcement Network of the U.S. Department of the Treasury ("FinCEN"), anti-money laundering requirements, know-your-customer requirements, record-keeping, reporting and capital and bonding requirements, and inspection by state and federal regulatory agencies
      • High Level Abstractions:
        • (registered,tzero)
        • (authorities,broker-dealer,regulatory,tzero)
        • (broker-dealer,registered,tzero)
        • (broker-dealer,businesses,tzero)
        • (regulatory,services,tzero)
        • (broker-dealer,businesses,regulatory,tzero)
        • (services,tzero)
        • (compliance,regulatory,tzero)
        • Inferred entity relationships (10)
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (broker-dealer,regulatory,trading,tzero) [inferred]
        • (broker-dealer,businesses,regulatory,tzero) [inferred]
        • (broker-dealer,businesses,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (services,tzero) [inferred]
        • (broker-dealer,regulatory,tzero,various) [inferred]
        • (registered,tzero) [inferred]

    • challenge (Read more)
      • As previously disclosed, tZERO's broker-dealer subsidiaries are currently undergoing various examinations, inquiries, and/or investigations undertaken by various regulatory authorities, which may result in financial and other settlements or penalties.
      • High Level Abstractions:
        • (authorities,tzero)
        • (authorities,regulatory,tzero)
        • (authorities,broker-dealer,regulatory,tzero)
        • Inferred entity relationships (6)
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (broker-dealer,regulatory,trading,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (broker-dealer,regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]

    • challenge (Read more)
      • Moreover, as a result of tZERO's projects seeking to apply distributed ledger technologies to the capital markets, tZERO's subsidiaries have been, and remain involved in, ongoing oral and written communications with regulatory authorities
      • High Level Abstractions:
        • (markets,technologies,tzero)
        • (markets,regulatory,tzero)
        • (capital,markets,tzero)
        • Inferred entity relationships (5)
        • (markets,tzero,verify_investor) [inferred]
        • (markets,tzero,wholly-owned) [inferred]
        • (capital,markets) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]

    • challenge (Read more)
      • Compliance with these requirements requires the dedication of significant resources and any material failure by tZERO Crypto, Inc to remain in compliance with the applicable regulatory requirements could subject it to liability or limit the services it may offer.
        On September 27, 2019, a purported securities class action lawsuit was filed against us and our former chief executive officer and former chief financial officer in the United States District Court of Utah, alleging violations under Section 10(b), Rule 10b-5, Section 20(a), Section 20(A) of the Exchange Act
      • High Level Abstractions:
        • (compliance,regulatory,tzero)
        • (regulatory,services,tzero)
        • Inferred entity relationships (3)
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (services,tzero) [inferred]

    • challenge (Read more)
      • Moreover, as a result of tZERO's projects seeking to apply distributed ledger technologies to the capital markets, tZERO's subsidiaries have been, and remain involved in, ongoing oral and written communications with regulatory authorities.
      • High Level Abstractions:
        • (authorities,tzero)
        • (authorities,regulatory,tzero)
        • Inferred entity relationships (2)
        • (regulatory,tzero,various) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]

    • challenge (Read more)
      • In addition, tZERO ATS, LLC owns and operates an alternative trading system registered with the SEC. Each of SpeedRoute and tZERO ATS, LLC is subject to regulation, examination, investigation, and disciplinary action by the SEC, FINRA, and state securities regulators, as well as other governmental authorities and SROs with which it is registered or licensed or of which it is a member.
      • High Level Abstractions:
        • (ats,sros,tzero)
        • (authorities,tzero)
        • Inferred entity relationships (1)
        • (ats,sros,trading) [inferred]

    • challenge (Read more)
      • These changes in marketing spending supported our customer acquisition efforts, resulting in a 205% increase in new customers compared to the second quarter of 2019.
        Technology expenses totaled $33.7 million for the three months ended June 30, 2020, a $526,000 increase compared to the three months ended June 30, 2019.
        General and administrative expenses decreased $4.6 million for the three months ended June 30, 2020 compared to the three months ended June 30, 2019, primarily due to an $8.6 million reversal of a legal settlement accrual due to a ruling in our favor in our gift card escheatment case in Delaware, partially offset by a $3.8 million increase in staff-related costs including accrued bonus.
        Our consolidated cash and cash equivalents balance increased from $112.3 million as of December 31, 2019, to $318.6 million as of June 30, 2020, an increase of $206.3 million, primarily as the result of cash flows from operating activities of $170.4 million, $47.5 million in proceeds from long-term debt, $6.3 million in proceeds from the sale of marketable securities, and $2.8 million in proceeds received in January from the sale of common stock executed in late December 2019 under our "at the market" sales agreement with JonesTrading, net of offering costs, partially offset by cash outflows of $4.1 million from the deconsolidation of MLG's net assets and $9.4 million in expenditures for property and equipment.

        For the three months ended June 30, 2020, our loss before income taxes in our Medici Ventures business, excluding our loss in our tZERO business, was $5.3 million, and we expect to continue to incur significant losses in our Medici Ventures business during 2020 as Medici Ventures'business model of providing technical assistance to companies in which Medici Ventures owns an interest has not yet generated material revenues.
        For the three months ended June 30, 2020, our loss before income taxes in our tZERO business, excluding our loss in the non-tZERO portion of our Medici business, was $10.5 million, and we expect to continue to incur significant losses in our tZERO business during 2020 as tZERO does not yet have a stable customer base or backlog orders and has not yet generated any meaningful revenue from any commercially available applications of its blockchain initiatives.
        Overstock has responded effectively to the challenges and opportunities created by the COVID-19 pandemic
      • High Level Abstractions:
        • (cash,tzero)
        • (loss,tzero)
        • (medici_ventures,tzero)

    • challenge (Read more)
      • tZERO's remaining businesses include tZERO Crypto, Inc, a cryptocurrency wallet and exchange services business, and Verify Investor, LLC, an accredited investor verification company.
        Strategies for our tZERO Business
        tZERO is a financial technology company pursuing initiatives to develop and commercialize the financial applications of blockchain technologies and democratize access to private capital markets. tZERO's primary initiatives currently consist of the following:
        Promote trading - tZERO ATS is focused on quoting for trading high-quality digital securities
      • High Level Abstractions:
        • (markets,trading)
        • Inferred entity relationships (1)
        • (markets,trading,tzero) [inferred]

    • challenge (Read more)
      • To achieve this, tZERO ATS, LLC is in discussions with several broker-dealers interested in subscribing to the tZERO ATS, which would enable their customers to trade digital securities traded on the ATS. tZERO also continues to develop new trading venues for digital securities such as BSTX as it seeks regulatory approval for a U.S. national exchange facility, as well as working to launch tZERO Markets (subject to regulatory approval) to support further investors who wish to access such trading venues.
        Create a world class trading experience - tZERO continues to seek opportunities to enhance the tZERO Technology Stack and improve investors'trading experience for all types of financial products.
      • High Level Abstractions:
        • (technology_stack,trading)

    • challenge (Read more)
      • Each of SpeedRoute LLC ("SpeedRoute") and tZERO ATS, LLC is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934 (the "Exchange Act") and in the states in which it conducts securities business and is a member of FINRA and other SROs (as applicable). In addition, tZERO ATS, LLC owns and operates an alternative trading system registered with the SEC. Each of SpeedRoute and tZERO ATS, LLC is subject to regulation, examination, investigation, and disciplinary action by the SEC, FINRA, and state securities regulators, as well as other governmental authorities and SROs with which it is registered or licensed or of which it is a member
      • High Level Abstractions:
        • (sros,trading)

    • WIP (Read more)
      • These investments include the alternative trading system (the "tZERO ATS") run by its wholly-owned subsidiary, tZERO ATS, LLC, which provides a licensed venue for matching buy and sell orders to its broker-dealer subscribers, including for the trading of digital securities, and its joint venture with BOX Digital Markets LLC ("BOX Digital"), intended to develop a U.S. national securities exchange facility with regulatory approvals enabling it to support trading in a type of digital security called a security token
      • High Level Abstractions:
        • (digital,regulatory,tzero)
        • (ats,digital,trading)
        • (ats,digital,trading,tzero)
        • (ats,regulatory,tzero)
        • (trading,wholly-owned)
        • (ats,trading,tzero,wholly-owned)
        • (digital,trading)
        • (ats,digital,tzero)
        • (digital,wholly-owned)
        • (digital,tzero,wholly-owned)
        • (ats,trading,wholly-owned)
        • (digital,trading,tzero)
        • (broker-dealer,regulatory,tzero,wholly-owned)
        • (ats,broker-dealer,trading,tzero)
        • (ats,regulatory,trading,tzero)
        • (broker-dealer,digital)
        • (ats,tzero,wholly-owned)
        • (trading,tzero,wholly-owned)
        • (broker-dealer,digital,tzero)
        • (digital,tzero,venture)
        • (broker-dealer,tzero,wholly-owned)
        • (ats,digital)
        • (broker-dealer,regulatory,trading,tzero)
        • (digital,regulatory)
        • (regulatory,tzero,wholly-owned)
        • (broker-dealer,digital,regulatory,tzero)
        • Inferred entity relationships (34)
        • (ats,digital,tzero) [inferred]
        • (digital,regulatory) [inferred]
        • (ats,broker-dealer,regulatory,tzero) [inferred]
        • (broker-dealer,digital) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (trading,wholly-owned) [inferred]
        • (digital,trading) [inferred]
        • (ats,digital) [inferred]
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (ats,digital,trading,tzero) [inferred]
        • (digital,trading,tzero) [inferred]
        • (broker-dealer,digital,tzero) [inferred]
        • (ats,regulatory,tzero) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (broker-dealer,trading,tzero) [inferred]
        • (ats,trading,tzero,wholly-owned) [inferred]
        • (broker-dealer,regulatory,tzero,various) [inferred]
        • (broker-dealer,regulatory,trading,tzero) [inferred]
        • (ats,regulatory,trading,tzero) [inferred]
        • (digital,tzero,wholly-owned) [inferred]
        • (ats,regulatory,trading) [inferred]
        • (ats,digital,trading) [inferred]
        • (ats,broker-dealer,trading) [inferred]
        • (broker-dealer,trading) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (ats,trading,wholly-owned) [inferred]
        • (digital,regulatory,tzero) [inferred]
        • (ats,broker-dealer,tzero) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (digital,tzero,venture) [inferred]
        • (regulatory,trading) [inferred]
        • (broker-dealer,tzero,various) [inferred]
        • (broker-dealer,digital,regulatory,tzero) [inferred]
        • (regulatory,trading,tzero) [inferred]

    • WIP (Read more)
      • These investments include the alternative trading system (the "tZERO ATS") run by its wholly-owned subsidiary, tZERO ATS, LLC, which provides a licensed venue for matching buy and sell orders to its broker-dealer subscribers, including for the trading of digital securities, and its joint venture with BOX Digital Markets LLC ("BOX Digital"), intended to develop a U.S. national securities exchange facility with regulatory approvals enabling it to support trading in a type of digital security called a security token.
      • High Level Abstractions:
        • (ats,security,trading,tzero)
        • (broker-dealer,security,tzero)
        • (digital,security)
        • (approvals,digital,tzero)
        • (regulatory,security,tzero)
        • (security,trading,tzero)
        • (broker-dealer,regulatory,security,tzero)
        • (approvals,broker-dealer,regulatory,tzero)
        • (approvals,ats,trading,tzero)
        • (approvals,digital)
        • (approvals,trading,tzero)
        • (ats,security,tzero)
        • (digital,security,tzero)
        • (ats,security,trading)
        • Inferred entity relationships (20)
        • (broker-dealer,regulatory,trading,tzero) [inferred]
        • (approvals,digital,tzero) [inferred]
        • (regulatory,tzero,various) [inferred]
        • (digital,tzero,wholly-owned) [inferred]
        • (approvals,digital) [inferred]
        • (security,trading,tzero) [inferred]
        • (ats,security,trading,tzero) [inferred]
        • (broker-dealer,regulatory,security,tzero) [inferred]
        • (digital,security,tzero) [inferred]
        • (broker-dealer,regulatory,tzero,wholly-owned) [inferred]
        • (regulatory,security,tzero) [inferred]
        • (ats,trading,wholly-owned) [inferred]
        • (regulatory,tzero,wholly-owned) [inferred]
        • (digital,tzero,venture) [inferred]
        • (digital,security) [inferred]
        • (trading,tzero,wholly-owned) [inferred]
        • (ats,trading,tzero,wholly-owned) [inferred]
        • (ats,security,tzero) [inferred]
        • (ats,security,trading) [inferred]
        • (broker-dealer,regulatory,tzero,various) [inferred]

    • WIP (Read more)
      • Each of SpeedRoute LLC ("SpeedRoute") and tZERO ATS, LLC is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934 (the "Exchange Act") and in the states in which it conducts securities business and is a member of FINRA and other SROs (as applicable)
      • High Level Abstractions:
        • (registered,trading)
        • (ats,registered,tzero)
        • (registered,tzero)
        • (ats,registered,trading)
        • (broker-dealer,registered,tzero)
        • (ats,broker-dealer,tzero)
        • (ats,broker-dealer,trading)
        • (broker-dealer,trading)
        • Inferred entity relationships (14)
        • (registered,trading,tzero) [inferred]
        • (ats,broker-dealer,regulatory,tzero) [inferred]
        • (ats,registered,trading,tzero) [inferred]
        • (ats,registered,trading) [inferred]
        • (ats,registered,tzero) [inferred]
        • (registered,trading) [inferred]
        • (ats,broker-dealer,tzero) [inferred]
        • (broker-dealer,tzero,wholly-owned) [inferred]
        • (broker-dealer,trading,tzero) [inferred]
        • (ats,broker-dealer,trading,tzero) [inferred]
        • (broker-dealer,tzero,various) [inferred]
        • (ats,broker-dealer,trading) [inferred]
        • (broker-dealer,trading) [inferred]
        • (registered,tzero) [inferred]

    • WIP (Read more)
      • Each of SpeedRoute LLC ("SpeedRoute") and tZERO ATS, LLC is registered with the SEC as a broker-dealer under the Securities Exchange Act of 1934 (the "Exchange Act") and in the states in which it conducts securities business and is a member of FINRA and other SROs (as applicable).
      • High Level Abstractions:
        • (ats,sros,trading)
        • Inferred entity relationships (2)
        • (sros,trading) [inferred]
        • (ats,sros,trading) [inferred]

    • WIP (Read more)
      • tZERO believes a world-class trading experience will be key to investors'adoption of digital securities and tZERO's products and services.
        Advocacy - tZERO operates businesses which are subject to complex and often uncertain legal environments and believes active engagement with regulatory authorities is necessary to realize the full potential of its business
      • High Level Abstractions:
        • (digital,investors)
        • (digital,investors,tzero)
        • (services,tzero)
        • Inferred entity relationships (2)
        • (digital,investors) [inferred]
        • (digital,investors,tzero) [inferred]

    • WIP (Read more)
      • This marketing allowance program allows us to optimize the marketing promotion type, mix and on-sale assortment to better meet the needs of our target customer segments and adapt to seasonal relevance.
        Our Medici Ventures Business
        Our Medici business initiatives include our wholly-owned subsidiary, Medici Ventures, Inc ("Medici Ventures"), which conducts the majority of its business through its majority-owned subsidiary tZERO Group, Inc Medici Ventures'strategy is to create or foster a set of products and solutions that leverage blockchain technology to generate efficiencies and increase security and control in six areas: identity management, property rights and management, central banking and currencies, capital markets, supply chains and commerce, and voting systems
      • High Level Abstractions:
        • (markets,tzero,wholly-owned)
        • (medici_ventures,tzero)
        • Inferred entity relationships (1)
        • (markets,tzero,verify_investor) [inferred]

    • WIP (Read more)
      • tZERO's remaining businesses include tZERO Crypto, Inc, a cryptocurrency wallet and exchange services business, and Verify Investor, LLC, an accredited investor verification company.
        Strategies for our tZERO Business
        tZERO is a financial technology company pursuing initiatives to develop and commercialize the financial applications of blockchain technologies and democratize access to private capital markets.
      • High Level Abstractions:
        • (markets,technologies,tzero)
        • (capital,markets,tzero)
        • Inferred entity relationships (3)
        • (markets,tzero,verify_investor) [inferred]
        • (markets,tzero,wholly-owned) [inferred]
        • (capital,markets) [inferred]

    • WIP (Read more)
      • This marketing allowance program allows us to optimize the marketing promotion type, mix and on-sale assortment to better meet the needs of our target customer segments and adapt to seasonal relevance.
        Our Medici Ventures Business
        Our Medici business initiatives include our wholly-owned subsidiary, Medici Ventures, Inc ("Medici Ventures"), which conducts the majority of its business through its majority-owned subsidiary tZERO Group, Inc Medici Ventures'strategy is to create or foster a set of products and solutions that leverage blockchain technology to generate efficiencies and increase security and control in six areas: identity management, property rights and management, central banking and currencies, capital markets, supply chains and commerce, and voting systems.
      • High Level Abstractions:
        • (capital,markets,tzero)
        • Inferred entity relationships (3)
        • (markets,tzero,verify_investor) [inferred]
        • (markets,tzero,wholly-owned) [inferred]
        • (capital,markets) [inferred]

    • WIP (Read more)
      • tZERO's remaining businesses include tZERO Crypto, Inc, a cryptocurrency wallet and exchange services business, and Verify Investor, LLC, an accredited investor verification company.
        Strategies for our tZERO Business
        tZERO is a financial technology company pursuing initiatives to develop and commercialize the financial applications of blockchain technologies and democratize access to private capital markets
      • High Level Abstractions:
        • (businesses,markets,tzero)
        • (technology,trading)
        • (markets,tzero,verify_investor)
        • (services,tzero)
        • Inferred entity relationships (2)
        • (markets,tzero,verify_investor) [inferred]
        • (markets,tzero,wholly-owned) [inferred]

    Target rule match count: 107.0 Challenge: 0.30 Momentum: 0.02 WIP: 0.18