Page 121 - DCOM507_STOCK_MARKET_OPERATIONS
P. 121

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.


          116                              LOVELY PROFESSIONAL UNIVERSITY
   116   117   118   119   120   121   122   123   124   125   126