NISM Series XVI - Commodity Derivatives Exam Notes
Page 6 Of 36
Go to:
Arbitrageurs simultaneously buy and sell in two markets where their selling price in one market is higher than their buying price in another market by more than the transaction costs, resulting in riskless profit to the arbitrager
Warehouse Operator facilitates storage and issues warehouse receipts against the stored commodity stock which can then be traded in the commodity markets.
Warehouse receipt is a receipt of goods or material kept for safekeeping in an exchange recognized warehouse. This document can be transferred by endorsement or delivery.
E-registry maintains electronic records of ownership of goods against negotiable warehouse receipts (NWRs) and warehouse receipts (WRs) and effects transfer of ownership of such goods by electronic process.
E-registry functions are Maintaining the identity of the original depositor, On-line viewing of warehouse charges/ stocks, Consolidation and splitting of the goods in deliverable lots, Maintaining stacking and weight tracking information, Ability to capture quality related information and receipt expiry dates, Facilitate consolidation of data relating to availability of commodity in the market
MODELEXAM® 
www.realsoftinfoplan.com