Page 110 - DCOM507_STOCK_MARKET_OPERATIONS

Unit 5: Trading System in Stock Exchange

Auction Order Book: Auction order book stores orders entered by the trading members to Notes
participate in the Exchange initiated auctions. Auction orders can be initiator orders,
competitor orders and solicitor orders.

Symbol & Series

Securities can be taken as default values from the order entry screen from any of the inquiry
screens such as MBP, OO, PT, AL, MI and SQ. In case the security is not set up in the Market Watch
screen, the Security List can also be used to take the codes as default values.
Order entry in a security is not possible if that security is suspended from trading. For example,
if a security is suspended in the normal market a message “Security is suspended in the normal
market” is displayed on the order entry screen. The label ‘Suspended’ is also displayed in the
market watch screen for the setup security.

Order entry is also not possible in case the security is not eligible to trade in a particular market.
E.g. If a security is not eligible to trade in the normal market a message “Security is not allowed
to trade in normal market” is displayed on the order entry screen. In case the user types the
symbol series incorrectly a message “Invalid symbol series” is displayed on the screen.

Quantity

When the buy/sell order entry screen is invoked, the regular lot size available at the best price
on the counter side gets defaulted in the order entry screen. In case auction book is selected for
display, the quantity has to be specifically mentioned by the user. Quantity mentioned should
be in multiples of regular lot size for that security.
Quantity Freeze

All orders with very large quantities will receive quantity alert at member terminal. Currently,
if member enters any order exceeding the lowest of the quantity given below, results in an alert
which will read as “Order entered exceeds alert quantity limit. Confirm availability of adequate
capital to proceed” and only after the member clicks the button ‘Yes’ the order will be further
processed for execution.
Quantity Freeze parameters:
(a) 0.5% of the issue size of the security or
(b) value of the order is around ` 2.5 crore or

(c) a global alert quantity limit of more than 25000 irrespective of the issue size of the security,
whichever is less.

Price

Along with the regular lot quantity, the best price on the counterside is also taken as default
value in the order entry screen. A user has the option to either enter the order at the default price
or overwrite it with any other desired price. If a user mentions a price, it should be in multiples
of the tick size for that particular security and within the day’s minimum/maximum price
range, otherwise the order is not accepted by the system and an order rejection message/
confirmation slip is generated. For No price band scrips (scrip), if a price outside the Operational
Range is entered, the order results in a price freeze and is not accepted as a valid order till the
time the Exchange approves it. All auction orders require the user to mention a price.

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