| Abstract: | The purpose of this study an assessment of e-trade practices and challenges of participants: - within the case of Ethiopian commodities on this the subsequent research question answered 1.What is the main information source of Ethiopian commodity exchange trading system? 2. How has performed the regulation system of the ECX on the members representatives? 3. Is there any difference between e-trading, warehousing process and grading of the commodity? 4. What factor affects the ECX warehousing process and grading of the commodity? 5 Does E- trading practice affects marketing system of Ethiopian commodity exchange? To assess those questions the researcher used quantitative and qualitative research design and 73 males and 53 females were selected participants randomly. A survey questionnaire was prepared to gather primary data, secondary data from the books and documents of the ECX, and other sources were also wont to augment the first data. The information was collected from a sample of 126 Ethiopian commodities exchange participants or members selected through sampling. So that, the data was analyzed through descriptive analysis and binary regression model by using SPSS version 26. The result shows that there have been network problems, biased sampling system and lack of adequate knowledge were the main challenges the researcher observed limited membership seat, membership seat fee, and occupation were found to be highly significant with the selection of membership category. aside from this consistent with the descriptive analysis lack of sampling system, higher penalty cost, higher membership seat fee, and transaction cost, were found to be a number of the constraints that hinder participants from the graceful functioning of transactions within the exchange. The researcher recommended the subsequent points the network system of the exchange was inefficient and practically affect E-trading activities. For the upper E-trading of the exchange, it should apply in enough, and proper network facilities should provide a higher concern and commitment in effectively and efficiently using ICT. The electronic trading system reduced price movement, it might cause lower volatility, lower risk within the market, and better liquidity by increasing the speed of transactions and lowering transaction costs, limiting informational asymmetries between trading interests, and increasing access to markets no matter one's geographical location. |
