The role of the regulatory authority and internet trading

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The role of the regulatory authority and internet trading

Post by Rosanne Szozda on Wed Jul 21 2010, 11:24

The internet trading system offers instant access to the network under the control of the regulatory authority. Investors can seek clarifications on any issue at any point of time. Recently, the regulatory authority issued a series of guidelines to the commodity exchanges concerning the intricacies involved in internet trading because the rules and regulations did not cover the operational and system requirements needed for transfer of commodities by an investor over the internet. However, the regulatory authority is yet to issue guidelines to the depository participant to interface its online system on to the Internet.

Nevertheless, the regulatory authority has approved a model for the transfer of commodities over the Internet as proposed by a prominent commodity trading agency. Actually, this trading agency has been following this policy in their internet trading platform since a couple of years. All commodity trading online platforms offer immense opportunities to players intending to be part of this emerging business model. When the stock market trade went online, many people were annoyed at such a move. They feared that the practices followed in online trade would be detrimental to their age-old notions and practices.

For newcomers into commodity trading, online platforms offer immense opportunities. Even then, there exist problems that needs to be surmounted. There could be problems because it takes time to assimilate the entire tools and concepts of the internet platforms. The stringent controls put in place by the regulatory authority regarding the transfer of commodities from the account of a trader at the click of a mouse may await sanction until all procedures are finalized.

Commodity trading using online platforms is not a hassle free process if the trader is not confident with the entire tools and other options on offer. Confidence is the key factor that helps investors to invest sizable funds into goods that do not have much value. Even then, the advent of online trade has totally rewritten the hitherto notions involving commodity trade. With the entry of more players, the situation is likely to get hotter in the coming years.

Rosanne Szozda
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Re: The role of the regulatory authority and internet trading

Post by chrisadam on Thu Aug 19 2010, 16:55

The internet trading system offers instant access to the network under the control of the regulatory authority. Investors can seek clarifications on any issue at any point of time. Recently, the regulatory authority issued a series of guidelines to the commodity exchanges concerning the intricacies involved in internet trading because the rules and regulations did not cover the operational and system requirements needed for transfer of commodities by an investor over the internet. However, the regulatory authority is yet to issue guidelines to the depository participant to interface its online system on to the Internet.

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