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    Vinay Krishna
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    The document summarizes the introduction of screen-based trading systems in India to replace open-outcry trading and increase efficiency. The National Stock Exchange (NSE) introduced NEAT, its screen-based trading system, while the Bombay Stock Exchange (BSE) introduced BOLT. Brokers connect to the exchange via VSAT terminals and enter orders through their PCs. Orders are sent to the exchange's mainframe computer via VSAT and broadcast to members. Screen-based trading operates on a price-time priority basis and provides features like snap quotes and distinguishing between active and passive orders. The document also outlines circuit breakers implemented in 2001 to freeze trading if indices move by 10%, 15%, or 20%.

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    Online trading on stock market

    Original Title

    Online trading

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    The document summarizes the introduction of screen-based trading systems in India to replace open-outcry trading and increase efficiency. The National Stock Exchange (NSE) introduced NEAT, its screen-based trading system, while the Bombay Stock Exchange (BSE) introduced BOLT. Brokers connect to the exchange via VSAT terminals and enter orders through their PCs. Orders are sent to the exchange's mainframe computer via VSAT and broadcast to members. Screen-based trading operates on a price-time priority basis and provides features like snap quotes and distinguishing between active and passive orders. The document also outlines circuit breakers implemented in 2001 to freeze trading if indices move by 10%, 15%, or 20%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    152 views10 pages

    Online Trading

    Uploaded by

    Vinay Krishna
    The document summarizes the introduction of screen-based trading systems in India to replace open-outcry trading and increase efficiency. The National Stock Exchange (NSE) introduced NEAT, its screen-based trading system, while the Bombay Stock Exchange (BSE) introduced BOLT. Brokers connect to the exchange via VSAT terminals and enter orders through their PCs. Orders are sent to the exchange's mainframe computer via VSAT and broadcast to members. Screen-based trading operates on a price-time priority basis and provides features like snap quotes and distinguishing between active and passive orders. The document also outlines circuit breakers implemented in 2001 to freeze trading if indices move by 10%, 15%, or 20%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    INTRODUCTION

    The trading on stock exchange in INDIA used to take place through open outcry method without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity, and transparency NSE and BSE introduced nation wide online fully automated SCREEN BASED TRADING SYSTEM

    SCREEN BASED TRADING


    NSEs screen based trading is known as NEAT-

    National exchange for automated trading. BSES screen based trading is known as BOLTBombay online trading.

    MECHANISM OF ONLINE TRADING


    NSE has main computer which is connected through VERY SMALL APERTURE TERMINAL(VSAT) installed at its office. THE main computer runs on a fault tolerant STRATUS mainframe computer at the exchange. Brokers have terminals installed at their premises which are connected through VSATS.

    HOW TO PLACE ORDER


    An investor informs broker to place an order on his behalf. The broker enters the order through his PC, which runs under windows NT and sends signal to the satellite via VSAT. The signal is directed to mainframe computer at NSE via VSAT at NSEs office. A message relating to the order activity is broad casted to respective member.

    To enter a buy order

    BASIS OF OPERATION
    The online trading operates on the strict basis of PRICE PRIORITY and TIME PRIORITY

    LOGGING ON
    On starting NEAT application, the logon screen appears with the following details. USER ID TRADING MEMBER ID PASSWORD NEW PASSWORD

    TERMINOLOGIES OF ONLINE TRADING


    Snap quote:- feature available to get instantaneous

    market information on a desired security. Active and Passive orders:- when any order enters the trading system, it is an active order. It tries to find a match on the other side of books. If it finds a match trade is generated, if does not finds match it turns to passive order which is stored in order book.

    Circuit breakers:-

    MOVEMENT

    TIME

    FREEZED

    Started implementing compulsorily from July 02, 2001. The circuit breakers will be operated at the three stages of INDEX movement, either way viz at 10%, 15%, 20%.

    10%

    PRIOR 1pm AFTER 1pm

    1 HOUR HOUR

    15%

    PRIOR 1pm AFTER 1pm2pm AFTER 2pm

    2 hours 1 hour Freezed for the day

    20%

    ANY TIME

    FREEZED FOR THE DAY

    Thank You

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