BOI documents show that DFNN is now registered under the 2000 Investments Priority Plan and is now qualified for incentives as a pioneering infotech venture.
According to the BOI, DFNN has been providing online stock trading solutions, web-based advertising services and e-commerce solutions to 17 stockbrokerage firms now subscribing to its proprietary Internet-based trading software.
DFNN had actually been registered as an existing and expanding IT firm when it applied for a pioneer status under the 2000 IPP.
BOI said that since DFNN met the P100-million project cost hurdle, the firm’s application for pioneer status had been approved. However, since it has been registered as an existing and expanding firm, it would be entitled to only three years of income tax holiday.
DFNN is an application service provider (ASP) and was originally registered under the Executive Order 226 that qualified it for a number of incentives including income tax holiday.
DFNN provides local stockbrokerage houses with its proprietary order routing software technology that allows online clients to buy and sell listed securities as well as to access real-time stock price and volume quotes through the Internet.
The company also provides the general public with free access to various financial and other information necessary for prospective investors to make sound investment decisions.
DFNN earns by charging its subscribers a transaction fee for the use of its proprietary online stock trading software. The company had entered into a non-exclusive, non-transferable license agreement with the Philippine Stock Exchange.
The license enables the company to use, display, perform, reproduce and redisseminate to its subscribers certain data providing quotation and other information relating to the trading of securities at the exchange.
DFNN was also planning to connect its website with domestic banks that provide real-time, online web-based banking services to their customers to ultimately allow the settlement of online stock transactions through the Internet.
The BOI report said DFNN has the capacity to handle over 1.7 million transactions per year as well as generate a wide base of 15 million page views to support is web-based advertising services.