BSE trading and settlement procedure?
The, Mumbai Exchange has initiated a number of measures aimed at providing quality products and services and expanding its network using cutting edge information technology. Five years back, the BSE made its transition from an 'outcry' system of trading to a completely electronic trading system.
BSE has introduced electronic trading system known as BOLT (BSE On Line Trading). With the following facility
1) This is an order driven facilitates efficient processing; automatic order matching and faster execution is enabled.
2) Trading system displays on a continuous basis scrip and market-related information required supporting traders. (Information includes best five bids and offers, last traded quantity and price, total buy and sell depth (irrespective of rates), open, high, low and close price, total number of trades, volume and value, and index movement. Other company-related information is also displayed)
3) As soon as an order is matched, the confirmation of the trade is generated on-line.
4) The order matching logic is based on best price and time priority.
5) The BSE On line Trading Platform has a capacity of conducting 2 million trades per day.
6) The latest state of the art technology infrastructure with Trader Work Stations located in more than 400 cities all over the country.
7) Trading on the BOLT system is conducted from Monday to Friday between 9: 30 a.m. and 3:30 p.m.
8) Trading can also be conducted through the BSE Internet Trading System - www.bsewebx.com the first Exchange enabled Internet Trading System.
9) BSE aims to provide trading anywhere and at anytime. With this endeavour in mind, the exchange continuously upgrades the hardware, software and networking systems so as to enable it to enhance the quality and standards of service to its members and other market intermediaries.
The settlement of transactions was earlier done in the weekly settlement environment, where the exchange had a carry forward facility. The exchange commenced exchange of trades on rolling basis where the trades are settled on T+ 2 basis.
Undelivered quantities of securities in settlement is promptly auctioned or closed out as per the well-laid procedure.
Two depositories, namely the Central Depository Services (India) Ltd. and National Securities Depository of India Ltd. operate in the Indian Market place. The Clearing House of the exchange has well- structured linkages with both the depositories.
Direct transfer of securities to and from the Beneficial Owner Accounts is facilitated at the Clearinghouse level only, making for the seamless movement of securities in the settlement system.
The settlement of transactions in the depositories mode is based on the ISIN codes of the securities. The exchange Rules, Bylaws and regulations have clearly laid down the default handling procedure.