Dual trading

Dual trading

The custom of a trader on the commodities market to deal for its own account and the investor's account at the same time.
References in periodicals archive ?
This dual trading has, in some ways, improved the position of Chinese publicly traded companies.
"There are lots of operational benefits from dual trading as well.
Whereas in some securities markets, brokers may trade with their customers in the same transaction (simultaneous dual trading or SDT), in other markets, brokers are only allowed to trade after their customers in a separate transaction (consecutive dual trading or CDT).
Keywords: Dual trading; Informed traders; Internalization; Piggybacking; Adverse selection
Dual trading occurs when a broker sometimes trades for customers as an agent, and at other times trades for his own account.
In futures exchanges, consecutive dual trading (CDT) is permitted, but not simultaneous dual trading (SDT).
The market, which was included in 1996 in the International Finance Corporation database, operated under a dual trading system, consisting of an upstairs market for large block trades and a trading floor exchange.
Both reauthorization bills restrict dual trading activity and toughen requirements on audit trails.
Recently, the Commodity Futures Trade Commission (CFTC) proposed legislation to severely curtail dual trading - the practice of floor brokers trading for both customer and personal accounts - at U.S.
The Coffee, Sugar and Cocoa Exchange has been among a chorus of voices expressing opposition to the Commodity Futures Trading Commission's (CFTC) heavily publicized campaign to sharply curtail the long-standing practice of dual trading at U.S.
The pair said the study fails to weigh dual trading's benefits against the costs and does not evaluate dual trading's functional effects on markets.
The Duke findings included: an insufficient sample size; a "grossly misleading" conclusion on the extent of dual trading; distorted results owing to aggregation of sample data across all markets and contract months; and an unsurprising and irrelevant finding that trading and execution costs are the same for both dual and non-dual traders.
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