Guest petterm Posted April 22, 2010 Report Share Posted April 22, 2010 Certain systems in use with commodities trading firms, however, identify a transaction with a combination of Client Id and Depositor's Id. Title of the depository account is not a critical data or information. This is because of the algorithm used for generating Client Ids by the system. To enter a transaction in the system, the depository participant or the issuer company/registrar and the transfer agent is required to enter Client Id and Depository Id. This generates an algorithm, which identifies the investor's account. If the Client Id or Depository Id is incorrect then the transaction will be automatically rejected by the system. This is the logic to issue guidelines that an individual is not required to open separate accounts according to the physical security holding pattern. Investors are not required to open separate accounts, but it is recommended that they follow the advice of the depository participants and be meticulous while opening the depository account. It should be in the names in which the certificates are held to avoid delays and resultant inconvenience. It is common to find that an investor is holding certificates issued by the companies in different styles. We will explain this with two examples. Mr. Arnold Baden Cromwell, a keen investor in the commodities market, is holding hare certificates in the following combinations of his name: • Mr. Arnold Baden Cromwell • Mr. Arnold B. Cromwell • Mr. A. Baden Cromwell • Mr. A.B. Cromwell Commodities trading firms offer much flexibility to their esteemed customers in many respects. This actually helps customers to be part of more trade cycles in different names. Link to comment Share on other sites More sharing options...
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