Technology island -- you have a customer who has developed the world's first computerised system for international trade transactions.

Full Service Trade System, a company set up in Bermuda about 18 months ago, is completing the pilot testing of TradeCard, software developed to link exporters, importers and banks doing international trading. The company plans a full launch of its system in the US, Singapore, Hong Kong and France early next year, before moving into other countries.

Transactions will be paperless and the company will act as the intermediary for exporters and importers through all stages of a trade. Once it gets going Full Service hopes to reach a volume of up to 1.5 million trades a year in five years time.

"It's a huge volume but there is $3 trillion in international trade being done by letter of credit,'' company chief financial officer Anthony Nagel said. "That's what we're looking to effectively replace.'' The company was originally set up by the World Trade Centres Assocation, based in New York at the World Trade Centre building. As planned, the non-profit association has divested itself of ownership as the company has found private investors to fund its setup. About $15 million has been raised so far.

"We have attracted investors who have an interest in the success of the product -- importers and exporters who can see the benefits of computerisation, and of removing the paper from international trade,'' Mr.

Nagel said.

A major coup for the company has been the signing up of NationsBank Corp. to its system. As the fourth largest bank in the US Mr. Nagel hopes this will help attract the critical mass of transactions to make the system fly.

Negotiations are underway with three other banks.

The company has also signed a contract with G.E. Information Services which will distribute the software, and provide training and support for users of the system around the world.

Full Service computerised transactions will be offered by lenders providing the financing for trades. Those doing the trade will operate either through GE's network or EQUANT, the commercial arm of SITA which links international airports around the world.

Members will make a telephone call to link into the network and then get connected to the other parties in a trade. Full Service makes its money from a transaction fee paid by the bank which is guaranteeing the money. The company also collects a small annual fee from members who use the TradeCard software.

The banks provide the credit while Full Service ensures that the exporters and importers comply with the terms of the transaction. It also provides the electronic documentation for contracts throughout the transation. Once the terms are met, Full Service authorises the bank to pay the exporter.

"This is a new system,'' Mr. Nagel said. "It's not a letter of credit. It's not a credit card subsitute. It's a sort of hybrid where we connect all parties to a trade, and guarantee that exporter gets paid if he complies with the terms.'' Full Service was a concept developed by World Trade Centres Association president Guy Tozzoli, who is chairman of the fledgling company. The association has about 300 member organisations representing about 500,000 companies around the world. The associations are organisations linking businesses and governments engaged in international trade.

The organisation saw TradeCard as a concept where their members could benefit from bringing it to market.

Currently Full Trade is located at Richmond House on Par-La-Ville Road where it has 14 employees. The company projects it will need 150 employees once the business takes off. Mr. Nagel said the company could eventually look at relocating to the former baselands near the International Airport.

That's the site of the "Technology Park'' oft touted by Government.

"We are an example of the kind of company which could make Bermuda into a technology island,'' Mr. Nagel said. "We can see this technology island as a positive for our business.'' Anthony Nagel STOCK STK