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Stock Market Operations
Notes Type ‘OL’ and series ‘BL’. It is a 35 minute market; i.e. the trading window shall normally remain
open from 9:15 hours to 9:50 hours. There is no pre-open and post close in the block trade
session. For a block trade, order should be of a minimum quantity of 5,00,000 shares or minimum
value of ` 5 crore which ever is lower. Orders get matched when both the price and the quantity
match for the buy and sell order. Orders with the same price and quantity are matched on time
priority i.e. orders which have come into the system before will get matched first. The securities,
base price, alert quantity applicable in the block trade session are same as those applicable for
the corresponding Normal Market on that day. As per SEBI requirement, member is required to
put orders at a price not exceeding (+/–) 1% from the previous close price/ruling market price,
as applicable, of normal market. Accordingly, every order price is validated for (+/–) 1% on the
ruling LTP in normal market and any order away from this will be rejected by the system.
Currently, market order is not allowed for BL series. Order with special terms such as ‘Stop
Loss’, ‘Disclosed Quantity’ is not available in this session.
Self Assessment
State whether the following statement is true or false:
15. There is a pre-open and post close in the block trade session.
Case Study Bombay Stock Exchange Improves Efficiency with TNS
Background
The Bombay Stock Exchange (BSE) is one of the oldest stock exchanges in Asia, with over
4800 companies listed. Established in 1875 and fully electronic since 1995, the BSE considers
the improvement of electronic trading an essential part of its growth strategy.
Business Challenge
Access to BSE for trading and market data has been limited to participants who have set up
their offices within India. Typically these offices were connected over leased lines. The
BSE required managed connectivity for both major financial organisations in India and
outside the country.
Solution
BSE appointed TNS to provide access to trading functionality and market data information
via its fully managed Secure Trading Extranet. TNS’ Secure Trading Extranet connects over
1,500 financial community end-points, representing buy and sell-side institutions, market
data and software vendors, exchanges and alternative trading venues. It boasts over 120
points of presence and provides services to customers across America, Europe and the
Asia Pacific region, with its reach extending to many more.
Question
Discuss the issue.
Source: http://www.tnsi.com/case-studies/trading-case-studies/bombay-stock-exchange
5.8 Summary
Trading at both the exchanges takes place through an open electronic limit order book, in
which order matching is done by the trading computer.
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