PLATAFORM

PLATFORM

UNDERSTANDING PLATFORM TRADE.

Platform trading uses the experience of qualified traders who are able to participate in investment grade buying and selling
bank obligations in the wholesale market. The trading operation is normally known as "controlled" or "managed" bank bond trading because the offer
The side of financial instruments and the "exit buyer" of financial instruments have already been previously arranged, and the price of instruments already contracted.
for, thus ensuring that the financial instruments will be sold to the stipulated "exit buyer" at a previously agreed higher price. Therefore, each and every trade completed
contractually guarantees a net profit to the merchant (and never a net loss). It is legal arbitration, that's all!

Merchants, for their part, normally trade against a non-exhausting commercial line of credit established on behalf of the customer. That's because merchants, under current rules, cannot
use your own assets to trade against. And where does the merchant's line of credit come from? Well, merchants are not magicians; they cannot evoke money from nothing. For this, merchants work with standard banks that offer credit facilities. There are no surprises there. However, these credit-issuing banks impose strict requirements on loans,
most notably that lines of credit must be "capitalized" by an acceptable form of collateral maintained in the "care, custody and control" of the credit facility. Therefore, the need
for trading platforms to implement exact procedures that fully satisfy the standard of "care, custody and control" of the credit issuing bank to activate the credit lines and the
requirement that interested customers fully comply with this.

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