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Funfani.com - Spreading Fun All Over!INFORMATION CLUBInformative ZoneFinancial LiteracyTowards a greater network in settlement and trading
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Author Topic: Towards a greater network in settlement and trading  (Read 2546 times)
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Melinda Wenni

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« on: July 09, 2010, 12:44:39 AM »

In any forex trading plan, the regulatory authority is responsible for the settlement of transactions in any trade, i.e., those involving the delivery and receipt of ‘currencies’ that are traded in the exchange.  The currencies ‘sold’ by investors are placed into a ‘clearing account’.  These currencies are then delivered to the clearing corporation or the clearing house (CC/CH) at the respective 'exchanges'.  These currencies become the ‘purchases’ and are retransferred into the ‘clearing account’ and then transferred to the buyer’s account monitored by the regulatory authority.

What has happened in the process?  The total quantity of currencies held at the regulatory authority has not changed.  What has changed is the ownership and it is represented by the movement into the investor’s accounts.

Consider the bonus/rights issue and the account being maintained for receiving the added benefits.  The account option gives freedom to the investor to receive this non-cash corporate action.  He/she can receive it in either the same account or a different account.  He/she is required to provide the account details to R&T (Registrar & Transfer) agent about the form (physical/dematerialized) of allotment of bonus/rights issue.

Then what about the rights issue form?  It is very similar to that used in a share market.  If a company is issuing rights shares, the issuer company and/or their R&T agent will send the rights form directly to all investors, including those in the electronic segment, as is done for shares in the physical segment.

A good forex trading plan helps to chalk out a successful path that will result in more income.  Successful investors always plan their approach in detail to surmount exigencies that may arise at the most unknown hour.  These investors have become household names as a result.  It is common knowledge that forex market is one of the most volatile.  Producing result is easier said than done.  Investors with the best plan however, find things much easier

« Last Edit: July 09, 2010, 01:07:08 AM by Khushi » Report to moderator   Logged
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