The trading system for securities at all the stock exchanges is a completely on-line Screen-Based Trading System(SBTS) accessible to all its trading members on equal time basis. The telecommunications link, connecting the trading workstation on trading-member premises to the mainframe computer is of crucial importance for the exchange to provide on-line responses within a few seconds. The permission to applicants selected as Trading members to trade on the Exchange is accorded in groups as Telecom Network expands progressively to cover all eligible trading members. The VSAT telecommunication network works as a closed user group and is available only to its members. For trading on the system, the trading member will also require a workstation which he is expected to purchase along with requisite software. The trading system provides enormous flexibility to trading members. While entering an order, a trading member can place various conditions on the order. The member may place limit on the price. The order may be matched at (a) the best price available, or (b) it may be a limit order, i.e., the order will match only if the price is better than the limit placed by the member. The trading member may specify the time period for which the order will be valid. Orders are matched automatically by the computer system. An order entering the system is unique order and gets a unique time stamp. The system conceals the identity of the trading member entering the order.
Salient features of trading system at NSE:
At present, NSE is the largest stock exchange operating in India in terms of volume as well as number of members.… Read the rest