Trade Security Research Articles

Trend and Momentum Technical Indicators for Investing in Market Indices

The purpose of this study is to evaluate the effectiveness of technical analysis indicators in investment strategies.We conducted an empirical study using four trend indicators and four momentum indicators across seven market indices. Our methodology employs a parameter optimization process for each indicator and compares the results with classical parameters reported in the economics literature.Our findings indicate that no technical indicator consistently outperforms the buy-and-hold strategy in the long run. In addition, the optimization procedures did not yield significant improvements in the results.This study contributes to the ongoing debate on the effectiveness of technical analysis indicators in securities trading by adding to the literature on the subject.

What Were the Influences on These Sogdian Merchants Doing Business in China During China's War with Xiongnu?

This paper investigates the affects to the Sogdian merchants who were doing business in China during Chinas war with the Xiongnu. Several arguments were made in this paper in order to support the points made below, with actual historical events and background, which includes the Yongjia rebellion that happened in the Western Jin Dynasty in China. The Paper also relied heavily on an ancient letter to support its statements, which was written by a Sogdian merchant who used to trade in China in the Western Jin dynasty, got trapped in China and could not leave. The paper proves the security of Sogdian life, property, and trade during the period of the war between China and the Huns.

Industrial technology network security measurement in international trade under discrete hopfield neural network

As global economic integration continues to advance, international trade has become increasingly vital for the economic development and growth of nations. This research aims to assess the trends in industrial technology security within China’s international trade and provide practical guidance for policy-making, corporate strategies, and international cooperation. The significance of the rising trend in security within China’s international trade industry lies in its establishment of a robust foundation for the long-term development of China’s international trade, contributing to its cooperation and competitiveness with other countries. In addressing the limitations of traditional measurement methods and providing a more comprehensive and accurate assessment of industrial technology security, this research presents an approach based on a discrete Hopfield Neural Network (HNN) for evaluating industrial technology security in international trade. This method integrates multiple indicators, including technology gap rates, to construct the Superior Quality Engineering (SQE) comprehensive evaluation model. The research employs a combination model of “entropy-grey relational-Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS)-discrete HNN” to assess industrial technology security. This research evaluates international trade industry technology security using patent data from 2015 to 2022 as samples. The results indicate an overall upward trend in security in China’s international trade industry. Within this trend, the research observes a stepwise increase in scale components, leading to continuous improvement in security. In terms of quality components, although security develops relatively slowly overall, it exhibits a trend of initial gradual decline followed by rapid growth. Regarding efficiency components, there is overall slow growth with periodic fluctuations. This research outcome provides substantial support for the research of industrial technology in international trade. The proposed method can assist businesses in evaluating their technological security in international trade and offer robust support for international trade decision-making.

Bank tail risk in China

AbstractIn this study, we investigate the tail dependency between bank stocks in China and 35 common risk factors. We measure univariate and multivariate conditional tail risk probabilities. The evidence indicates that tail events from risk factors in the banking, security trading, real estate, and energy industries have the largest effects on the realization of extreme returns from Chinese bank stocks. The univariate conditional tail risk is considerably higher than the unconditional tail risk. The impact of multiple tail events from several risk factors occurring simultaneously is much stronger than tail events from one single risk factor. In general, there is a stronger cross‐market tail linkage between emerging market risk factors and bank stocks in China when compared with developed market risk factors. However, the cross‐market tail linkage between developed market risk factors and bank stocks in China rose sharply during the 2008 financial crisis.

РОЗВИТОК ТА ІНСТИТУЦІЙНІ ТРАНСФОРМАЦІЇ ФОНДОВОГО РИНКУ УКРАЇНИ

The article examines the development and institutional transformations of the Ukrainian stock market. It has been confirmed that in Ukraine there is a pronounced bank-centric nature of the financial system by comparing indicators of the ratio of capitalization of listed companies and bank loans to Ukraine's GDP. It was determined that the Ukrainian stock market during the research period is constantly developing and transforming and attracts the attention of both domestic and foreign investors. Ukraine follows international standards in the field of exchange activity and works to improve the regulatory framework for market development. The most important institutional transformations in the domestic stock market under the influence of legislative changes are characterized. Separate quantitative aspects of the development of the domestic stock market for 2012-2022 were analyzed. It was noted that the transformations of the stock market were characterized not only by changes in the quantitative indicators of the development of the securities market of Ukraine, but also had a significant impact on the institutional, regulatory, intermediary, technical and information infrastructure of the domestic stock market. The most important directions of the transformation of the stock market of Ukraine, in particular of an institutional and digital nature, are substantiated. The key aspects of the transformation of the stock market related to digitalization processes are highlighted: electronic trading is a tool that allows you to trade securities online directly through electronic trading platforms; increasing transparency promotes quick and effective dissemination of information about companies, their financial condition and development prospects; the growing role of robot-advisors who can provide investment advice, analyze markets and predict risks; increasing the availability of services for small investors through digital platforms; changes in the structure of the market due to digital technologies lead to changes in the structure of the stock market, in particular, to an increase in the role of alternative trading platforms and a decrease in the importance of traditional exchanges. In the institutional environment, increased requirements for companies wishing to go through the listing procedure on the stock exchanges contributed to the exit of inefficient and fictitious issuers, ensuring a higher level of investor confidence in the market. However, we note that this has also led to a narrowing of the number of companies willing and able to meet these requirements, which may limit investment opportunities in the market.

Crimes of the Breaches of Trust and Equity in Financial Securities Trading

The study focused on crimes involving breaches of trust and equality in securities trading, particularly in stock markets. These markets hold significant economic value for people, investors, and financial institutions. This research aims to investigate crimes that may occur in the context of the stock market and trade and have a detrimental impact on the national economy. The primary objective of this study is to ascertain the fundamental legal framework governing the criminalization of illegal acts that disrupt securities trading, determine the extent of criminal liability and penalties for such acts, and evaluate the efficacy of UAE law in safeguarding financial securities markets through criminal legislation. The research primarily examines crimes involving breaches of trust and equality, as trust and equality serve as fundamental principles underpinning transactions in the stock market. Violating these principles can have detrimental consequences, impacting both investors engaged in market activities and the overall national economy. Numerous

Cross-Chain Digital Asset System for Secure Trading and Payment

Blockchain as a ledger technology is attractive without the need for central servers. There are many types of blockchains in different fields, such as digital asset trading and payment, which have business interactions. In the fields, the digital asset and payment information on their blockchains need to be securely cooperative with each other. However, some business activities are on different blockchains, which have different consensus algorithms and network architectures, thus limiting the interoperability among these activities and making each blockchain an island. Cross-chain technology can connect different blockchains and realize the interoperability and sharing of information among them. This work designs a cross-chain digital asset system for secure trading and payment. It builds two parallel chains, i.e., digital asset chain (DAC) and payment chain (PC), and their functions are analyzed and designed. The cross-chain, i.e., relay chain (RC), is used to realize cross-chain interoperability, where the cross-chain message format and authority setting are designed to endow parallel chains with the ability to recognize. The decentralized characteristic of the RC allows cross-chain messages to be safely transmitted to ensure secure trading and payment. Through testing and analysis, the proposed system can provide more secure trading and payment than its peers.

Analyzing horizontal integration and market efficiency in platform enterprises: A case study of exchanges

AbstractAs a platform for the trading of bulk commodities, securities, and futures, exchanges, characterized by platform‐like attributes, provide inexhaustible power for the further development of commodity economy through horizontal integration. This paper examines the international integration landscape of the modern exchanges through the lens of platform economy theory, specifically examining the ramifications of their horizontal integration on market efficiency. Employing the net utility hypothesis within the Hotelling model, we construct a nuanced trader utility model. Through a comparative analysis of platform profit, trader utility, and social welfare, the research discerns the impact of exchanges' horizontal integration. We highlight the intrinsic incentives for such integration within exchanges and put forth pertinent policy recommendations, adding a dimension of practical relevance to the academic discourse. The paper concludes by highlighting the role of government in promoting the efficiency of platform enterprises.

Blockchain for finance: A survey

AbstractAs an innovative technology for enhancing authenticity, security, and risk management, blockchain is being widely adopted in trade and finance systems. The unique capabilities of blockchain, such as immutability and transparency, enable new business models of distributed data storage, point‐to‐point transactions, and decentralized autonomous organizations. Here, the authors focus on blockchain‐based securities trading, in which blockchain technology plays a vital role in financial services as it ultimately lifts trust and frees the need for third‐party verification by using consensus‐based verification. The 12 most popular blockchain platforms are investigated and 6 platforms that are related to finance are elaborated on, seeking to provide a panorama of securities trading practices. Meanwhile, this survey provides a comprehensive summary of blockchain‐based securities trading applications. Numerous practical applications of blockchain‐based securities trading are gathered and they are categorized into four distinct categories. For each category, a typical example is introduced and how blockchain contributes to solving the key problems faced by FinTech companies and researchers explained. Finally, interesting observations are provided ranging from mainstream blockchain‐based financial institutions to security issues of decentralized finance applications, aiming to picture the current blockchain ecosystem in finance.

When Foreign Policy Becomes Trade Policy: The EU's Anti‐Coercion Instrument

AbstractThe European Union (EU) has taken a geoeconomic turn since 2017 by creating a series of new unilateral instruments designed to preserve European autonomy and adjust to the progressive unravelling of the liberal international economic order. The most controversial of these instruments is the 2023 Anti‐Coercion Instrument (ACI), designed to deter third countries from targeting the EU and its member states with economic coercion through measures affecting trade or investment. This article analyses why this new policy instrument was created, traces its institutional genesis and explores its implications by asking whether the ACI represents an intentional attempt to transform the foreign policy issue of coercion into a commercial one. Using process tracing based on interviews and primary and secondary materials, we argue that ‘foreign policy becoming trade policy’ through the ACI was an unintended consequence both of external pressures to institutionalise the trade–security nexus and of the EU's uneven internal competence base.

Critical factors to consider in the trade–security nexus of the African Continental Free Trade Area: A catalyst for establishing peace

ABSTRACT This study examines the geostrategic importance of the African Continental Free Trade Area (AfCFTA), discusses its potential trade impacts on African states, and considers whether it could support regional peace. Regional integration is crucial for achieving industrialisation, promoting trade across African borders, and preserving regional peace and security. Inextricably linked to regional integration is a security community comprising a distinct group of individuals for whom the likelihood of large-scale conflict or violence has diminished. A comparative analysis was conducted using Africa’s trade patterns, milestones, and achievements during 2015–2017 and 2022–2023. Subsequently, the key causes of insecurity on the African continent were explored, focusing on the Regional Economic Communities and states embroiled in coups during 2020–2023. The findings suggest that African authorities view the AfCFTA positively and believe economic integration may bring about peace. However, African authorities would require a strong continental strategy – supported by robust regional and national programmes – to promote investor confidence and trade, considering Africa’s high levels of intercommunal violence, civil unrest, violent extremism, terrorism, and transnational crime. The AfCFTA delayed trade liberalisation to protect Africa’s less developed economies, resulting in poor working conditions, intellectual capital loss, and decreased tax collection.

Indonesia's Regulation and Implementation of Subsidies in View of Agreement on Subsidies and Countervailing Measures 1995-WTO

<em><span lang="IN">Regulation and implementation of subsidies in Indonesia is in the form of financial assistance provided by the government either directly or indirectly to companies, industries, industrial groups or exporters. With the aim of increasing export activities and reducing import activities for the welfare of the people and not violating the provisions of the 1945 Constitution, as the definition of subsidies is explained in the PP. Number 34 of 2011 concerning Anti-Dumping Measures, Compensatory Measures and Trade Security Measures Article 1 paragraph 8. In the Indonesian Government's policy, subsidies are given as long as they are to achieve people's welfare, and do not violate the order in the 1945 Constitution. However, in terms of government policy to improving people's welfare and protecting the domestic economy, often causing problems in the scope of international trade. This article aims to examine and understand how subsidies are regulated and implemented in Indonesia in terms of the Agreement On Subsidies And Countervailing Measures 1995-WTO. This research is normative legal research which examines written law based on applicable laws and regulations. The results of this research are that based on the policy issued by the Indonesian government, subsidies are given in order to realize the domestic economy, so based on this policy, basically the Agreement On Subsidies And Countervailng Measures 1995-WTO limits subsidies, so that their use does not cause harm to other countries' industries.</span></em>

Disclosure-based regulation and municipal security trade prices

Purpose This paper aims to measure the trade price impact of a recent regulatory disclosure intervention in municipal securities secondary markets, which required broker-dealers to disclose securities trading information on a near-real-time and continuing basis. Design/methodology/approach The author analyzes trade price outcomes in the preintervention and postintervention regimes using a suite of time series estimations that give heteroskedasticity-robust standard errors (Prais–Winsten and Cochrain–Orcutt), accommodate higher-order lag structure in the error term (autoregressive integrated moving average) and account for volatility clustering in the time series (generalized autoregressive conditional heteroskedasticity). Findings Results show that regulatory disclosure intervention significantly improved trade price efficiency in municipal securities secondary markets as daily trade price differential and volatility both declined market-wide after the disclosure intervention. Research limitations/implications The sample consists of trades in State of California general obligation bonds; therefore, empirical findings may not be generalizable to other states, local governments and different types of bonds. Practical implications The findings highlight voluntary information disclosure as a practical and effective mechanism in disclosure regulation of municipal securities secondary markets. Originality/value Only a small body of work exists that examines information disclosure regulation in municipal securities secondary markets; therefore, this paper expands knowledge on the topic and should provide renewed impetus for regulatory efforts aimed at improving the efficiency of municipal capital markets.

Toward best practices for trade-security measures

Abstract The global economy is increasingly being weaponized. Citing security concerns from traditional defence to economic competitiveness, health emergency, and climate crisis, states are turning to sanctions, tariffs, export controls, investment screening, and subsidies. But while economic statecraft is becoming common, rules remain scarce. Questions about notice, duration, proportionality, harm minimization, compensation, retaliation, and/or rebalancing lack clear answers and seem almost theoretical. Once, we might have hoped the World Trade Organization (WTO) would play a role in developing such rules. But in the absence of an Appellate Body and in the face of state rejections of review, WTO’s deliberative processes have ground to a halt. This essay argues for a new approach, focused less on adjudicating security disputes than on developing best practices for invoking and using trade security measures. It explains why a new approach is necessary, detailing both how the WTO’s deliberative engine broke down and why dispute settlement is ill-suited to develop guidance now needed. It suggests where and how best practices might be developed, before considering an agenda for such a best practice process. In the end, the hope is a process that can develop expectations—expectations that might make a world of economic statecraft a bit less dangerous.

A study on automated improvement of securities trading strategies using machine learning optimization algorithms

Abstract Automation in securities trading offers advantages over human subjective trading, such as immunity to subjective emotional factors, high efficiency, and the ability to monitor multiple stocks simultaneously, making it a cutting-edge development path in the securities trading industry. In this paper, we first apply the concept of time-frequency decomposition, gradually moving from the first-order moments of securities prices to the higher-order moments. We then combine this with the EMD time-frequency decomposition method to analyze the securities price sequence and extract the characteristics of the securities price fluctuations. Finally, we use the differential long- and short-term memory network to construct an automatic optimization trading system. We compare the system’s performance with traditional technical analysis indexes, as well as the annualized returns of PPO and A2C models on various securities, to verify its performance under unilateral rising, oscillating rising, and plummeting quotes. Finally, we conducted a live test on 1000 GEM stocks. The system in this paper outperforms all traditional technical indicators, with an average annualized return of 71.85% at the lowest and 127.27% at the highest among 5 securities, demonstrating excellent performance. In the three quotes of Ningde Times, Aier Dental, and Goldfish that are rising one way, rising and falling over time, and rising again, the annualized returns of this paper’s system are 77.13%, 67.16%, and 12.66%, which are higher than those of the PPO and A2C models.

Under Trump and Biden has the US Become a Protectionist and National Security Trading State?

Under Trump and Biden has the US Become a Protectionist and National Security Trading State?

New Trade Remedy Methodologies and Multidimensional Responses : Towards Anti-Circumvention of Dumping

This paper is to examine anti-circumvention measures in the European Union (EU) and the United States (US) and propose the ideal circumvention prevention models in Korea. To combat circumvention of anti-dumping measures, the EU defined circumvention as export of a product in parts and assembly in a EU or a third country, slight modification of the product, export through a producer with a lower duty rate. US has defined it as goods assembled or completed in the US or in third countries, goods with minor changes, later-developed product. This study examines the specific criteria and real-world case studies in both the EU and the US, shedding light on their legal frameworks and enforcement procedures. The paper emphasizes the importance of South Korea's need for a comprehensive circumvention system and the potential implications of such a development. In a rapidly evolving global trade landscape, implementing robust anti-circumvention rules is crucial to ensuring fair competition and safeguarding domestic industries. By drawing inspiration from the experiences of the EU and the US, South Korea can bolster its trade defense mechanisms, protect its economic interests, and promote a level playing field for all stakeholders. This paper underscores that South Korea's new circumvention rules have the potential to enhance the country's trade policy and foster a more equitable and secure trading environment, both domestically and internationally.

Automated Passive Income from Stock Market Using Machine Learning and Big Data Analytics with Security Aspects

With the evolution of Machine Learning, the Internet of Things (IoT), and Big Data Technologies, digital data has increased exponentially. To handle and process such a large bunch of data, high-performance computers are used across various fields. One of the fields has been the financial capital market of stocks, bonds, commodities, foreign exchange, and cryptocurrencies, where supercomputers essentially trade securities with high computational ability and intelligent algorithms. Large financial institutions with significant capital spend a lot of money on programmers and data analysts to develop the best accuracy trading algorithms to drive the overall market. A novice trader or investor with less to no experience in financial markets feels it difficult to search for good trades or stocks to invest their hard-earned money on a short to long-term time horizon. They rely on expert advice for stock recommendations and sometimes end up making significant losses. This paper focuses on developing a universal trend trading indicator that can analyze and predict the overall future trend of any stock, bond, commodity, forex, or cryptocurrency with the highest possible profitability. The historically traded extensive dataset of stock prices and investment reports of large financial institutions worldwide are gathered. Various machine learning and decision-making models are employed to perform technical and fundamental analysis across multiple securities. The output of the trend trading indicator is displayed on charting platforms, which can provide entry-exit levels at which even novice investors can decide where to invest their money. Multi timeframe analysis is deployed to predict short-term, mediumterm, and long-term overall trends, thus increasing the output accuracy. The indicator is helpful for all kinds of retail traders and investors worldwide who struggle to earn profits from financial markets. Our proposed system was able to achieve a profitability of 86.28% annual returns. The entire system, along with the trading orders, is automated so that anyone can earn extra passive income every month from the stock market.

Методический подход к интегральной оценке уровня внешнеторговой безопасности Российской Федерации

the article presents the results of the development of the author's methodological approach to the integral assessment of the level of foreign trade security of the Russian Federation. A system of indicators for assessing the level of foreign trade security at the national level has been formed. The information base for carrying out calculations within the framework of the proposed methodological approach has been determined.

Blockchain-enabled renewable energy certificate trading: A secure and privacy-preserving approach

In the 21st century, transitioning to renewable energy sources is imperative, with fossil fuel reserves depleting rapidly and recognizing critical environmental issues such as climate change, air pollution, water pollution, and habitat destruction. Embracing renewable energy is not only an environmental necessity but also a strategic move with multiple benefits. By shifting to renewable energy sources and supporting their production through the acquisition of renewable energy certificates, we foster innovation and drive economic growth in the renewable energy sector. This, in turn, reduces greenhouse gas emissions, aligning with global efforts to mitigate climate change. Additionally, renewable energy certificates ensure compliance with regulations that mandate the use of renewable energy, enhancing legal adherence while promoting transparency and trust in energy sourcing. To monitor the uptake of renewable energy, governments have implemented Renewable Energy Certificates (RECs) as a tracking mechanism for the production and consumption of renewable energy. They certify the generation of a specific amount of electricity from renewable sources, allowing for accurate tracking of renewable energy contributions to the overall energy mix. However, there are two main challenges to the existing REC schema: (1) The RECs have not been globally adopted due to inconsistent design; (2) The consumer privacy has not been well incorporated in the design of blockchain. In this study, we investigate the trading of RECs between suppliers and consumers using the directed acyclic graph (DAG) blockchain system and introduce a trading schema to help protect consumer information. The DAG system reduces the intense calculation of typical blockchains for scalability and lowers mining fees by eliminating the mining of blocks. The proposed approach allows renewable energy suppliers and consumers to trade RECs globally and to take advantage of secure trading transactions. Our results demonstrate lower transaction time by 41% and energy consumption by 65% compared to proof-of-stake.