PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

The buying and selling of shares by a stockbroking firm or commercial bank for its own account, rather than as an agent for other parties. In 1996, with the advent of "dual capacity trading", stockbroking firms were allowed to trade for their own account. This was part of the dematerialisation process of the JSE and the end of open outcry trading. Over a period of three years all shares on the JSE were dematerialised so that "scrip" or physical share certificates virtually ceased to exist. Today, all shares are simply an electronic record on a database. Dual capacity trading meant that stockbroking firms could buy and sell shares for their own account rather than simply acting as agents for other parties in a process known as proprietary trading.

Edit Glossary Term