Traditional Trading System Research Articles

Performance analysis of a blockchain process modeling: Application of distributed ledger technology in trading, clearing and settlement processes

This study aims to assess the extent to which blockchain technology (BCT) may constitute an alternative to the conventional stock trading system and emphasize the changing roles of the key parties. It is expected that BCT would enhance the performance of the process across the three stages (i.e. trading, clearing and settlement within the stock exchange environment). A thorough literature review is conducted to understand the BCT performance modeling techniques and approaches (empirical and analytical) and to examine the theoretical potentials and capabilities of BCT in the financial markets. The case study and simulation methods are used to evaluate the impact of BCT implementation in optimizing the process of trading, clearing and settlement in Abu Dhabi Securities Exchange (ADX) stock-trading activities. This paper presents a simulation analysis comparing a blockchain system with a traditional trading system in the context of stock market. The simulation procedures involve modeling processes over different durations and transaction volumes, using metrics such as process time and cycle time to evaluate performance. The performance index combines these metrics with weights to ensure accurate and consistent measurements. Simulation results reveal that the blockchain system significantly outperforms the current trading system, especially at higher transaction volumes, highlighting its scalability and efficiency. A threshold of 30,000 transactions is identified as the point where blockchain’s benefits become apparent. The analysis shows that blockchain significantly elevate the process efficiency. It reduces both cycle time and process time across varying transaction volumes, maintaining consistency and reliability. Additionally, a simple simulation using the Hyperledger Fabric platform demonstrates the practical implementation of a permissioned blockchain for clearing transactions, emphasizing the system's capability to manage high transaction volumes efficiently and securely. The use of blockchain network for handling seamless transactions using pre-defined smart contracts significantly improves the performance of the stock trading processes, specifically in the clearing phase. Interestingly, the BCT system drops the need for a “third party” (i.e. stock custodian) across the three stages. At the end of the paper, we propose a thereat mitigating model for stock trading with a new blockchain system.

Assessing and neutralizing multi-tiered security threats in blockchain systems

Blockchain technology, the backbone of digital cryptocurrencies, has rapidly ascended as a pivotal tool in modern commerce due to its decentralized, immutable nature. It offers fresh, innovative avenues for overcoming trust issues inherent in traditional trading systems. Yet, the unique traits that make blockchain advantageous also render it vulnerable. Cybercriminals are ceaselessly innovating, devising new tactics to exploit these vulnerabilities and resulting in a surge of security incidents that have led to substantial economic losses. The increasing frequency and sophistication of these attacks jeopardize the integrity and stability of blockchain networks. This paper offers a comprehensive study of blockchain system architecture, the principles underlying various attack methods, and viable defense strategies, all organized within a hierarchical framework. Initially, the paper categorizes blockchain attacks according to the hierarchy of blockchain systems, providing a detailed exploration of the characteristics and principles behind these attacks at each level. Next, the paper summarizes existing countermeasures and proposes effective new strategies for bolstering blockchain security. The paper concludes with a recap of its key findings and outlines the landscape for future research in blockchain security.

Emission trading innovation mechanism based on blockchain

The rationality and scientific nature of the emission trading mechanism is the key to the effective implementation of environmental and economic policies. As far as China is concerned, there are phenomena such as information asymmetry, low supervision efficiency, and alienation of government and enterprise behaviors caused by the incomplete mechanism of emission trading in the practice of different pilots. The introduction of blockchain technology can innovate the traditional transaction model and form a decentralized peer-to-peer transaction and a trusted emission trading market. To this end, based on the current emission trading mechanism and the characteristics of blockchain technology, this paper couples the core technologies of blockchain with the functional requirements of application scenarios. Then, an innovative application framework is built based on the consortium blockchain Fabric from three aspects: emission trading supervision, secondary trading market construction, as well as emission trading incentive and punishment mechanisms. Technologies such as the consensus mechanism, smart contract, Merkle tree and asymmetric encryption are comprehensively applied in this process. In the construction of the blockchain framework of the secondary market for emission trading, institutional changes and innovations brought about by the blockchain at various levels are analyzed in terms of participants, transaction processes and the transaction scope. At the same time, smart contract functions and algorithms are designed for the purchase, transfer-out and trading of emission rights, and the operation business logic of the smart contract is analyzed. On the whole, this paper explores the application framework of blockchain technology in the field of emission trading at the macro level, and analyzes the application mechanism of the corresponding technologies of blockchain at each coupling point in the framework at the micro level. The collaborative analysis at the two levels shows that blockchain technology and the requirements of emission trading mechanism can be effectively coupled, and the application of blockchain technology can promote the effective supervision of enterprises' emission behavior, making the processes of the purchase, transfer and transaction of emission rights intelligent and automated, and providing technical support for cross-regional emission trading to reduce transaction costs and management complexity. In addition, the issuance of emission credits based on smart contract will be a new incentive for companies to actively participate in transactions. Based on the above analysis, this paper believes that the innovative application of blockchain technology is of great significance in the promotion of the market-based allocation of element of emission trading and the rational allocation of environmental resources. It will lead to a major breakthrough in the traditional trading system in terms of trading modes, forming a value transmission network of environmental resources between the government and polluters.

TRADE POLICY RESPONSES TO THE CONTEMPORARY CHALLENGES OF THE GLOBAL MARKET

The present paper discusses several new trends in the global trade such as digitalization of trade, regional trade agreements and the emergence of new global players. Based on theoretical research and the study of the available secondary statistical data it analyzes how trade policy can address these changes under the existing world trading system. Trade rules underlying the traditional trading system are still applicable under increasing digital trade and enhanced bilateral and regional trade integration. However, WTO Agreement has nothing to do with those barriers of trade that go beyond traditional trade measures and are very acute for the developing countries. They involve access to the Internet and other telecommunication infrastructure, weak formal institutions and legal protection, lack of awareness about the potential benefits and opportunities in digital trade and lack of IT literacy. In order to overcome these barriers developing countries should incorporate trade policy as a component of deep economic reforms. The pace of development of the multilateral trading rules is slower than required by increasingly flexible business models. Therefore, countries try to find solutions at the bilateral and plurilateral levels. For instance, the EU develops regulations under Digital Single Market as well as within its bilateral trade agreements with non-member states. Georgia is implementing digital economy regulations in accordance to its DCFTA with the EU. Access to information and communication technologies is essential to be engaged in digital trade. For developing countries investments in digital infrastructure is an important policy issue, while developed countries are more focused on balanced trade rules, which ensure the development of digital trade, on the one hand and security and data protection, on the other. Contemporary trade policy goes beyond regulation based on classical trade instruments. It encompasses regulation within regional trade and investment agreements, technical standards and other behind-the-border measures, regulation of services and intellectual property markets and support for sustainable development goals, etc. A large part of the contemporary regional trade agreements covers all these areas. Development of bilateral and regional cooperation by encouraging deep integration can be discussed as an effort to overcome inflexibilities of the multilateral system. Regional integration enables countries to develop selective approach towards their trade partners and maintain certain degree of autonomy by applying different trade rules towards different partners. Elimination of behind the border barriers and enhanced regulatory harmonization leads to reduced trade costs but it also leads to race to the bottom in regulatory facilitation, what might be detrimental to the national policy goals. The effects of deep economic integration cannot be assessed based on the traditional approach of trade creation and trade diversion, because integration as an institutional process affects not only trade flows but also economic and institutional development levels of the countries. Deep regional integration reduces institutional differences within regions and increases them across regions. Besides it, the increasing role of BRICs countries in international trade leads to greater diversity of actors in the world market. New global players ask for greater voice in the process of reforming trade rules. Therefore, global trade rules should reflect the diversity that comes from changes in the patterns as well as the main players of the world market

TRADE POLICY RESPONSES TO THE CONTEMPORARY CHALLENGES OF THE GLOBAL MARKET

The present paper discusses several new trends in the global trade such as digitalization of trade, regional trade agreements and the emergence of new global players. Based on theoretical research and the study of the available secondary statistical data it analyzes how trade policy can address these changes under the existing world trading system. Trade rules underlying the traditional trading system are still applicable under increasing digital trade and enhanced bilateral and regional trade integration. However, WTO Agreement has nothing to do with those barriers of trade that go beyond traditional trade measures and are very acute for the developing countries. They involve access to the Internet and other telecommunication infrastructure, weak formal institutions and legal protection, lack of awareness about the potential benefits and opportunities in digital trade and lack of IT literacy. In order to overcome these barriers developing countries should incorporate trade policy as a component of deep economic reforms. The pace of development of the multilateral trading rules is slower than required by increasingly flexible business models. Therefore, countries try to find solutions at the bilateral and plurilateral levels. For instance, the EU develops regulations under Digital Single Market as well as within its bilateral trade agreements with non-member states. Georgia is implementing digital economy regulations in accordance to its DCFTA with the EU. Access to information and communication technologies is essential to be engaged in digital trade. For developing countries investments in digital infrastructure is an important policy issue, while developed countries are more focused on balanced trade rules, which ensure the development of digital trade, on the one hand and security and data protection, on the other. Contemporary trade policy goes beyond regulation based on classical trade instruments. It encompasses regulation within regional trade and investment agreements, technical standards and other behind-the-border measures, regulation of services and intellectual property markets and support for sustainable development goals, etc. A large part of the contemporary regional trade agreements covers all these areas. The development of bilateral and regional cooperation by encouraging deep integration can be discussed as an effort to overcome inflexibilities of the multilateral system. Regional integration enables countries to develop selective approach towards their trade partners and maintain certain degree of autonomy by applying different trade rules towards different partners. Elimination of behind the border barriers and enhanced regulatory harmonization leads to reduced trade costs, but it also leads to race to the bottom in regulatory facilitation what might be detrimental to the national policy goals. The effects of deep economic integration cannot be assessed based on the traditional approach of trade creation and trade diversion, because integration as an institutional process affects not only trade flows but also economic and institutional development levels of the countries. Deep regional integration reduces institutional differences within regions and increases them across regions. Besides it, the increasing role of BRICs countries in international trade leads to greater diversity of actors in the world market. New global players ask for greater voice in the process of reforming trade rules. Therefore, global trade rules should reflect the diversity that comes from changes in the patterns as well as the main players of the world market.

Critical Incident Technique as an Instrument for Assessing the Service Quality in a Chosen E-Shop

Abstract The development of e-commerce and communication technologies has allowed changes in the traditional trading system, currently customers can use both stationery shops and e-shops. People no longer need to leave their homes to go shopping, even everyday groceries. They can use the e-shop at any time of day or night, at home or at work. There are no queues, they can get to know other people’s opinions, compare products and services with each other. They can shop while sitting on the sofa in front of the TV and sipping tea. Shopping can be done in the e-shop up to thousands of kilometers away. Especially in the current Covid-19 pandemic, online shopping has become very popular. The aim of the paper was to assess the quality of services offered by the research e-shop. During the research the Critical Incident Technique (CIT) was used. A direct interview was conducted with the customers of the research e-shop who, after using its services, agreed to share their impressions and opinions. They were supposed to describe incidents or situations related to the research e-shop, which they have in their memory, and which caused special satisfaction or dissatisfaction. The analysis allowed to indicate that less than 50% of the incidents described by the customers were positive incidents that cause customers’ high satisfaction, which is not a good situation for the research e-shop. Improvement actions are needed.

Effect of Credit Rating on Trade Credit: Empirical Evidences from Pakistani Non-financial sector

The study investigated how non-financial businesses use trade credit in the context of borrowing restrictions in developing economies. Despite the tremendous changes in the trend, trade credits still have huge usage. Buyers and suppliers have moved from traditional trading systems to advancing automated and sophisticated business methods. Multi-dimensional aspects of business strategy also include trade credits. Trade credit has a huge change in supply and demand. Trade credit is used as the main source of financing in almost all regions of the world. World-renowned companies have access to financial lending, but they prefer trade credit because it provides them an edge against collateral held at financial institutions. This research includes some factors like trade credit and credit rating. In this study has unbalanced panel data from non-financial sector of Pakistan. The data range consists of 2008 to 2016 for 38 non-financial firms. Here, by using the fixed effect model examined how credit rating affects the trade credit supply and demand in case of large and small firms. The results show that account receivables and payables both increase in the case of large firm credit rating. They can easily use the trade credit process. In case of small firms, they also join this process or trade credit agreement for smoothing their business function, but they feel some difficulties from both sides.

Big Data Algorithmic Trading Systems Based on Investors’ Mood

abstractTraditional automated trading systems use rules and filters based on Chartism to send orders to the market, aiming to beat the market and obtain positive returns in bullish or bearish contexts. However, these systems do not consider the investors’ mood that many studies have demonstrated its effects over the evolution of financial markets. The authors describe 2 "big data" algorithmic trading systems over Ibex 35 future. These systems send orders to the market to open long or short positions, based on an artificial intelligence model that uses investors’ mood. To measure the investors' mood, the authors use semantic analysis algorithms that qualify as good, bad, or neutral any communication related to Ibex 35 made on social media (Twitter) or news media. After 1.5 years of research, conclusions are: First, the authors observe positive returns, demonstrating that investors’ mood has predictive capacity on the evolution of the Ibex 35. Second, these systems have beaten the Ibex 35 index, showing the imperfect efficiency of the financial markets. Third, big data algorithmic trading systems numbers are better in Sharpe ratio, success rate, and profit factor than traditional trading systems on the Ibex 35, listed in the Trading Motion platform.

2 Designing, Planning & Implementation of IT Infrastructure & Security for A Brokerage House

M-Commerce is widely known as wireless networktechnology, use as the essential means of communication forbusiness transactions. Mobile commerce is seen as anaugmentation of E-commerce empowered by cell phones.Transactions either indirectly or directly carried out orsupported through mobile phones. ABC Brokerage House is thepioneer in Online Trading Services. In online trade, customerscan trade using the online trade software and website. Beforeswitching users, from traditional trading system to mobiletrading system, the weaknesses of infrastructure, securitybreaches, and risk factors should be considered carefully. Theinfrastructure solution should be designed with respect tointeroperability, security, scalability, non-repudiation of ABCBrokerage House on the behalf of best practices for MobileCommerce Trading System. The solution has its distributednature and is a suitable architecture for managing businessprocesses of ABC Stock Brokerage House. The solution is wellplanned, designed and it is in accordance with ISOrecommendation. The solution provides more flexibility and alsoprovides redundancy by using clustering of database server. Theproposed solution provides more flexibility and also providesredundancy plan and clustering of database server. This solutionalso switches ABC Brokerage House infrastructure to the realworld infrastructure by removing risk factors and implementingthe latest technologies.

Designing, Planning & Implementation of IT Infrastructure & Security for A Brokerage House

M-Commerce is widely known as wireless networktechnology, use as the essential means of communication forbusiness transactions. Mobile commerce is seen as anaugmentation of E-commerce empowered by cell phones.Transactions either indirectly or directly carried out orsupported through mobile phones. ABC Brokerage House is thepioneer in Online Trading Services. In online trade, customerscan trade using the online trade software and website. Beforeswitching users, from traditional trading system to mobiletrading system, the weaknesses of infrastructure, securitybreaches, and risk factors should be considered carefully. Theinfrastructure solution should be designed with respect tointeroperability, security, scalability, non-repudiation of ABCBrokerage House on the behalf of best practices for MobileCommerce Trading System. The solution has its distributednature and is a suitable architecture for managing businessprocesses of ABC Stock Brokerage House. The solution is wellplanned, designed and it is in accordance with ISOrecommendation. The solution provides more flexibility and alsoprovides redundancy by using clustering of database server. Theproposed solution provides more flexibility and also providesredundancy plan and clustering of database server. This solutionalso switches ABC Brokerage House infrastructure to the realworld infrastructure by removing risk factors and implementingthe latest technologies.

Designing, Planning & Implementation of IT Infrastructure & Security for A Brokerage House

M-Commerce is widely known as wireless network technology, use as the essential means of communication forbusiness transactions. Mobile commerce is seen as an augmentation of E-commerce empowered by cell phones.Transactions either indirectly or directly carried out or supported through mobile phones. ABC Brokerage House is the pioneer in Online Trading Services. In online trade, customers can trade using the online trade software and website. Before switching users, from traditional trading system to mobile trading system, the weaknesses of infrastructure, security breaches, and risk factors should be considered carefully. The infrastructure solution should be designed with respect to interoperability, security, scalability, non-repudiation of ABC Brokerage House on the behalf of best practices for Mobile Commerce Trading System. The solution has its distributed nature and is a suitable architecture for managing business processes of ABC Stock Brokerage House. The solution is wellplanned, designed and it is in accordance with ISO recommendation. The solution provides more flexibility and alsoprovides redundancy by using clustering of database server. The proposed solution provides more flexibility and also provides redundancy plan and clustering of database server. This solution also switches ABC Brokerage House infrastructure to the real world infrastructure by removing risk factors and implementing the latest technologies.

Preconditions for an Informal Economy: ‘Trucking and Bartering’ in New Guinea

This fourth paper, in a series on the theme of the informal economy, considers the extent to which premodern trade in Melanesia constituted any preparation for engagement with the market. It reviews explanations of trade and exchange in 'aboriginal' societies, from Adam Smith in the eighteenth century and the German historical school in the nineteenth, to their modern heirs and critics. The view of trade as due to a natural human tendency to 'truck and barter' is counter-posed against a conception of exchange as the product of socially regulated customs, in the manner of The Gift. Malinowski's account of the kula, and its (mis)interpretation by Van Leur, the historian of Asian trade, raises the question whether Melanesia possessed any counterpart of the travelling Asian peddler. To consider this question, the paper examines the traditional trading systems of regions which would later become the hinterlands of three modern towns (Rabaul, Port Moresby and Goroka). In preparation for later discussion of these towns' colonial experience, the paper surveys the traditional trade of the New Guinea interior, the long-distance seaborne trade of the coasts and islands, and the particular case of the Gazelle Peninsula. It draws conclusions which throw some light on the question of Asian-style 'peddling' in Melanesia. Finally, the paper considers how Keith Hart's concept of 'informality', derived from Weber's notion of rational/legal bureaucracy, could be seen as applicable to the early colonial setting of New Guinea. It finds a piquant correspondence between a highly bureaucratized German New Guinea and the Weberian original, located back in Bismarck's Berlin.

The Brazilian stock market development: A critical analysis of progress and prospects during the past 50 years

This paper highlights the origin of the stock market in Brazil, and traces the reforms that have been undertaken to develop the stock market. It also highlights the growth of the Brazilian stock market, as well as the challenges currently facing the market. The country has one big stock market, known as the BM&FBOVESPA, which is one of the world’s largest stock markets. Over the years, a number of stock market reforms have been implemented in Brazil. Among these reforms have been the restructuring of the financial market, the replacement of the traditional trading systems by full electronic trading systems, the enactment of new laws governing the stock market, as well as the revision of the existing laws. In addition, the formation of a regulatory body known as Securities and Exchange Commission (CVM) in 1976 also assisted in the creation of an environment conducive for the growth and development of the stock market. Since the implementation of these reforms, the Brazilian stock market has developed significantly in terms of market capitalisation, the total value of stocks traded, and the turnover ratio.

Currency Exchange Rate Forecasting with Neural Networks

This paper presents the prediction of foreign currency exchange rates using artificial neural networks. Since neural networks can generalize from past experience, they represent a significant advancement over traditional trading systems, which require a knowledgeable expert to define trading rules to represent market dynamics. It is practically impossible to expect that one expert can devise trading rules that account for, and accurately reflect, volatile and rapidly changing market conditions. With neural networks, a trader may use the predictive information alone or with other available analytical tools to fit the trading style, risk propensity, and capitalization. Numerous factors affect the foreign exchange market, as they will be described in this paper. The neural network will help minimize these factors by simply giving an estimated exchange rate for a future day (given its previous knowledge gained from extensive training). Because the field of financial forecasting is too large, the scope in this paper is narrowed to the foreign exchange market, specifically the value of the Japanese Yen against the United States Dollar, two of the most important currencies in the foreign exchange market.

Implications of Electronic Trading for Agricultural Prices

Electronic trading is expected to result in net prices which are more favorable to producer sellers and/or buyers of agricultural products than those generated in traditional trading systems. Lower transaction costs and reduction of market power imbalances account for the difference in net prices. Review of the evidence from actual electronic trading supports these hypotheses. The importance of balanced information availability and effective loss of power by one side of the market due to electronic trading suggests that the move to greater use of such systems must come from agricultural producers.