ABC, B/G, BMC, BSE, CDSL, CM, Co, DCA, DEA, DP, DPG, DQ, DvP, FDR, FI,

FII, F&O, FTP,

IFSD, IOC, IPF, ISIN,

Trading in India previously done by open outcry system. Which are time consuming and
inefficient, limits on trading volume and efficiency?

SBTS- Screen Based Trading System in order provides liquidity, efficiency and transparency.
There is a strict price/time priority and hence cuts down on time, cost and risk of error, as
Well as on fraud resulting in improved operational efficiency.

Price sensitive information

There are no limits in the geographical locations.
Provides equal access to all, without disclosing the identity.
Electronic order matching.

The market screens at any point of time provide complete information on

1) Total order depth in a security
2) The five best buys and sells available in the market
3) The quantity traded during the day in that security, the high and the low, the last
traded price,

Technology was used to carry the trading platform from

The trading hall of stock exchanges to the premises of brokers. Further to the PCs and to
handheld devices through WAP for convenience of mobile investors.

The main computer in the NSE is connected through VSAT (Very Small Aperture Terminal).
The main computer runs on a fault tolerant STRATUS mainframe computer at the Exchange.
Brokers have terminals installed at their premises which are connected through SATs/leased
lines/modems.

An investor informs a broker to place an order on his behalf. The broker enters the order
through his PC, which runs under Windows NT and sends signal to the Satellite via
VSAT/leased line/modem. The signal is directed to mainframe computer at NSE via VSAT at
NSE's office. A message relating to the order activity is broadcast to the respective member.
The order confirmation message is immediately displayed on the PC of the broker. This
order matches with the existing passive order(s), otherwise it waits for the active orders to
enter the system.

Orders are matched on the basis of strict time price priority.

Firstly the best buy order is matched with best sell order.
The one that came in early has priority over the later one.
If there is no proper match then it will remain in the exchange till end of the day or till fresh
order comes in or it is cancelled or modified.

Time related orders 1) immediate or cancel

Price related orders 1) buy limit/ sell limit/ stop loss order
Volume related orders 1) disclosed quantity

NEAT = National Exchange for Automated Trading. NEAT system supports the order driven
markets, where in orders match on the basis of price and time priority.
The NEAT system provides an Open Electronic Consolidated Limit Order Book (OECLOB).
Limit orders are orders to buy or sell shares at a stated quantity and stated price. If the
price quantity conditions do not match, the limit order will not be executed. The term ‘limit
order book’ refers to the fact that only limit orders are stored in the book and all market
orders are crossed against the limit orders sitting in the book. Since the order book is visible
to all market participants, it is termed as an ‘Open Book’.

The regular lot size and tick size for various securities traded is notified by the Exchange
from time to time.

There are four types of capital markets:

1) Normal market – consists of Regular Lot Orders, Special Term Orders, Negotiated
Trade Orders, Stop Loss Orders.
2) Odd lot market
3) Retail Debt Market
4) Auction Market