By SITA KANGANARAN The trading computer of Duluth trading company used by the women traders in its trade operations, which the women used to trade the daily stock market, has been exposed to paper trading, leading to a paper trading shortage.
The company said on Monday that it has started to collect the data required for its paper trading.
“Paper trading was always the most important part of DulUTH trading system.
In the last year, the trading computer for Duluth stock trading system has been scanned with an anti-counterfeiting device, which has revealed that paper trading has been used for the last two years,” said Duluth CEO Rajesh Gupta.
The paper trading in Duluth’s trading system is not the only problem.
The trading computer, used by female traders in DulUTH’s trading business, was also exposed to a virus and is now undergoing a security audit.
“The paper traded is being scanned.
We are also conducting a paper scanning exercise on all of the paper traded stocks and will do that once the audit is complete,” Gupta said.
The Duluth paper trading company is facing a paper shortage, which is costing the company Rs 5.8 crore every day.
The women traders, who trade the stock market on their own, use their paper trading computer to trade on the market, which makes the trading process more efficient.
Duluth has around 30,000 female traders, all of whom have access to a computer.
They work for DulUTH as traders in the daily trading market and they earn Rs 3.7 lakh per day.DULUTH traders are the ones who trade in stock markets like the Bombay Stock Exchange, the National Stock Exchange and the Bombay High Court, Gupta said, adding that the DulUTH women traders have been among the top earners in the market.
According to a study conducted by the Financial Services Regulatory Authority (FSRA), paper trading is the number one way of getting money out of the stock exchange.
The FSRA said that it had recommended the use of electronic trading, but Duluth did not follow the recommendation.
“We are now looking at the use and impact of paper trading on our trading system, which could also result in paper trading shortages, if we do not do something about it,” Gupta added.
The issue comes at a time when paper trading and other digital trading platforms have become a hot topic among financial professionals.