Page 101 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes price, etc. Investors can also know the fate of the orders almost as soon as they are placed with
the trading members. Thus, the National Exchange for Automated Trading (NEAT) system
provides an Open Electronic Consolidated Limit Order Book (OECLOB).

!
Caution Limit orders are orders to buy or sell shares at a stated quantity and price.
If the price-quantity conditions do not match, the limit order will not be executed. The term
‘limit order book’ refers to the fact that only limit orders are stored in the book and all market
orders are crossed against the limit orders sitting in the book. Since the order book is visible to
all market participants, it is termed as an ‘Open Book’.

5.1.2 NEAT System
NSE is the first exchange in the world to use satellite communication technology for trading. Its
trading system, called National Exchange for Automated Trading (NEAT), is a state of-the-art
client server based application. At the server end all trading information is stored in an in
memory database to achieve minimum response time and maximum system availability for
users. It has uptime record of 99.7%. For all trades entered into NEAT system, there is uniform
response time of less than one second. The NEAT system supports an order driven market,
wherein orders match on the basis of time and price priority. All quantity fields are in units and
prices are quoted in Indian Rupees. The regular lot size and tick size for various securities traded
is notified by the Exchange from time to time.

Self Assessment

Fill in the blanks:

1. Technology has been used to carry the trading ....................................... from the trading hall
of stock exchanges to the premises of brokers.
2. ....................................... carried the trading platform further to the PCs at the residence of
investors through the Internet.
3. The trading system operates on a strict ....................................... priority.
4. The best buy orders match with the ....................................... order.

Caselet Philadelphia Stock Exchange

t is the oldest securities exchange in the United States but there is nothing antique
about the Philadelphia Stock Exchange’s approach to information security. Other
Icompanies hold their breath and cross their fingers, hoping only authorized people
gain access to critical data that’s password-protected, and that security patches and
encryption strategies hold back the flood of malware waiting to attack from the outside.
The Exchange, on the other hand, developed a strategy to “find the problems before they
find you.”
The proactive path led the Exchange straight to Safend. Safend, headquartered in Tel Aviv,
Israel with a US office in Philadelphia, develops security software for network endpoints.
Specifically, Safend solutions address the vulnerabilities presented by peripheral
connections such as USB, removable media, and wireless devices.
Contd...

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