Page 103 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes 5.2.1 Trading System Users Hierarchy
The trading member has the facility of defining a hierarchy amongst its users of the NEAT
system. This hierarchy is depicted in Figure 5.2.
Figure 5.2: Trading System Users Hierarchy

The users of the trading system can logon as either of the user type. The significance of each type
is explained below:

1. Corporate Manager: The corporate manager is a term assigned to a user placed at the
highest level in a trading firm. Such a user receives the end-of-day reports for all branches
of the trading member. The facility to set branch order value limits and user order value
limits is available to the corporate manager. The corporate manager also has facility to set
symbol wise user order quantity limit. He can view outstanding orders and trades of all
users of the trading member and can also cancel/modify outstanding orders of all users of
the trading member.

2. Branch Manager: The branch manager is a term assigned to a user who is placed under the
corporate manager. The branch manager receives end-of-day reports for all the dealers
under that branch. He can set user order value limit for each of his branch. He can view
outstanding orders and trades of all users of his branch and can also cancel/modify
outstanding order of all users of his branch.
3. Dealer: Dealers are users at the lowest level of the hierarchy. A dealer can view and
perform order and trade related activities only for himself and do not have access to
information on other dealers under either the same branch or other branches.

5.2.2 Local Database

The local database provides a faster response time to the users. All inquiries made by a user for
own orders/trades are serviced through the local database. If however, a corporate manager or
branch manager makes inquiries for orders of any dealer/branch manager of the trading firm,
then the inquiry is serviced by the host. The data stored in the local database include system
messages, security related information and order/trade related data of the user.

5.2.3 Market Phases

The trading system is normally made available for trading on all days except Saturdays, Sundays
and other holidays. Holidays are declared by the Exchange from time to time. A trading day
typically consists of a number of discrete stages which are mentioned below:

1. Opening: The trading member can carry out the following activities after login to the
NEAT system and before the market opens for trading:
(a) Set up Market Watch (the securities which the user would like to view on the screen)

(b) View Inquiry screens

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