LANKABANGLA SECURITIES

LIMITED
REPORT ON THE INTERNAL SOFTWARE USED BY THE
COMPANY

12/8/2015
GROUP 11

Group Members:
Sanjida Rashid Promi- 1410242
Syed Mufrad Nabi- 1330222
Kazi Amrin Bin Faruque- 1330192
Mumtahina Moon- 1221024
 :::::ACKNOWLEDGEMENT:::::

At first I would like to show my sincere gratitude for Mr. Parvez Ahmed Sharif, Lecturer of
Independent University, Bangladesh in the Management Information System (MIS) field, for
helping and supporting us not only to complete the report but also acknowledging us about
how we would be needing the basic concepts of Management Information System in the real
work field, by assigning us to prepare this report.

Secondly, I would like to thank the Chief Technology Officer of LankaBangla Securities
Limited, Mr. S.A.R. Md. Muinul Islam, for providing all the information that we needed to
complete this report. Not only did he help us in providing the internal information about the
company but also provided us with various information about what is finance and how
management information system is needed generate financial activities in the market field.

This report is about the internal and external hardware and software used by the Lanka
Bangla Securities Limited. However, due to lack of time and distance we couldn't provide all
the information but we tried to cover as much information that is needed for our report to be
completed.
TABLE OF CONTENTS
:::::ACKNOWLEDGEMENT::::: .............................................................................................. 2

1. ::::::INTRODUCTION:::::: .................................................................................................... 4

COMPANY'S PROFILE ........................................................................................................ 4

2. ::::::BUSINESS PHILOSOPHY:::::: ..................................................................................... 5

VISION ................................................................................................................................... 5

MISSION ................................................................................................................................ 5

VALUES ................................................................................................................................ 5

SERVICES ............................................................................................................................. 5

PRODUCTS ........................................................................................................................... 6

1. CTA (Cash Trading Account) ...................................................................................... 6

2. FTA (Foreign Trading Account) .................................................................................. 6

3. MTA (Margin Trading Account) ................................................................................. 7

4. NITA (Non Resident Investors Taka Account) .......................................................... 7

5. IPO (Initial Public Offering) ........................................................................................ 8

KEY STRENGTHS .............................................................................................................. 10

MILESTONES ..................................................................................................................... 11

3. ::::::INTERNAL SERVERS:::::: .......................................................................................... 13

4. ::::::TESA:::::: ...................................................................................................................... 20

TESA Solution Benefits ....................................................................................................... 20

Principal Functions of TESA ................................................................................................ 21

DHAKA STOCK EXCHANGE- Nasdaq & Flextrade ........................................................ 21

NASDAQ .......................................................................................................................... 22

Flextrade .......................................................................................................................... 22

5. ::::::CONCLUSION:::::: ...................................................................................................... 23
 1. ::::::INTRODUCTION::::::
COMPANY'S PROFILE

LANKABANGLA SECURITIES LIMITED scrupulous investment in time and labor to

create a better investment pathway for the general public in the Bangladesh Stock Market has
made them become the leading equity brokerage house in the country.

They began as Vanik Bangladesh Securities Ltd in 1997 with their activities confined only
within the Chittagong Stock Exchange (CSE) Ltd. A year later, they made a step ahead and
introduced themselves to the Dhaka Stock Exchange (DSE). They rebranded themselves as
LankaBangla Securities Ltd. in 2005 following a restructuring of the company.

They specialize in developing the country’s most efficient stock brokerage workforce with
unmatched skills and consummate perfectionism. Also, they cover each and every corner of
Bangladesh as you they have ten branches spread in the leading cities and towns
countrywide.

LankaBangla Securities Ltd is the leader in terms of customer transactions. That’s why they
are again crowned as the largest brokerage house in terms of transaction value for the 6th
consecutive time in DSE and 7th consecutive time in CSE in 2011.

Quality, convenience, and reliability are certain things that is provided at the highest level
from the broker and that is the key to such a strong network of key clients all over the world.
Furthermore, the local and international recognitions from financial institutions, custodian
banks, corporations, international fund managers, and other fellow brokers for
professionalism has laid the foundation of the future growth and further success of the
company.

Their ability to meet the demands considering every client’s time horizon, goals, and risk
tolerance have made them settle relations with thousands of retail and institutional clients all
over the globe.

LankaBangla Securities Ltd is a 90.91% owned subsidiary of LankaBangla Finance Limited

(LBFL) which is one of the leading listed non banking financial institutions in Bangladesh
engaged in Leasing, Credit Card Services, Merchant Banking, Corporate Financing, and
Financial Consultancy. LBFL is owned by a group of highly successful local business
entrepreneurs of Bangladesh, the Sampath Bank Limited of Sri Lanka, the One Bank Limited
of Bangladesh, and the general public. With all these on the back, the house LBSL is
undoubtedly a global one which knows the preferences, acts on the choice, and guarantees the
most comfortable investment environment while clients choose to invest in Bangladesh.
 2. ::::::BUSINESS PHILOSOPHY::::::
VISION

Growing together with our stakeholders by implementing the most comprehensive, efficient
and state of the art brokerage platform to maintain the excellence and maximize the wealth of
shareholders.

MISSION

 Providing Quality Product and Services

 Ensuring the Use of State of the Art Technology
 Being the Hub of International Investment
 Demonstrating Comprehensive Integrity with Market
 Maintaining Corporate Governance
 Promoting Research and Analysis
 Involving in Continuous Process Improvement

VALUES

 Accountability: Ensuring responsibility and conformity

 Diversity: As inclusive as our services
 Integrity: Being real with task and work force with highest ethical standards
and fairness in every event
 Leadership: The courage to shape a better future
 Quality: Ensuring the service with commitment
 Respect: We honor the rights and beliefs of our fellow associates, our
investors, key stakeholders and our community. We treat others with the
highest degree of dignity, equality and trust.
 Teamwork: We promote and support a diverse, yet unified, team. We work
together to meet our common goals

SERVICES

 Brokerage Service
 NITA Internet Trading
Service
 Foreign Trading
Service
 CDBL Service
 Research Service
 Cutting Edge IT
infrastructure
PRODUCTS

1. CTA (CASH TRADING ACCOUNT)

Definition

CTA (Cash Trading Account) is a facility

that is provided to clients for trading with
their own finance.

Features

 Orders can be received through

email, telephone or fax.

 Trade execution confirmation is

provided to client.

 Regular emailing of Portfolio

Statement.

Eligibility

 Any citizen of Bangladesh.

 Age must be above eighteen.

2. FTA (FOREIGN TRADING ACCOUNT)

Definition

FTA (Foreign Trading Account) is a facility that is provided to the foreign institutional
clients, comprising of different funds, international brokers, banks etc, who are interested in
trading Bangladeshi securities.

Features

 Dedicated booth for foreign trades with access to Bloomberg terminal on the trading
desk.

 Orders can be received through email, Bloomberg EMSX, IB, fax.

 Trade execution confirmation can be provided through email, Bloomberg EMSX, IB,
fax (according to client preference).

 Settlement done through DvP – RvP basis.

 Execution updates are provided time to time.

Eligibility

 Board resolution authorizing the account opening and the signatories to sign on behalf
of the company.

 Specimen Signature (included separately or in attached account opening form).

 Copy of the Memorandum and Articles of Association.

 Copy of the Certificate of Incorporation.

 One Copy of a valid photo ID of each account operator.

 Valid photo ID of the CEO/Managing Director of the company.

3. MTA (MARGIN TRADING ACCOUNT)

Definition

MTA (Margin Trading Account) is a facility that is provided to clients for trading with
margin loan. The margin loan and interest rate can be varied with respect to market condition.

Features

 Orders can be received through email, telephone or fax.

 Trade execution confirmation is provided to client.

 Regular emailing of Portfolio Statement.

Eligibility

 Any citizen of Bangladesh.

 Age must be above eighteen

4. NITA (NON RESIDENT INVESTORS TAKA ACCOUNT)

NITA (Non Resident Investors Taka Account) is a facility that is provided to non-resident
individuals/institutions including non-resident Bangladeshi nationals who are interested in
trading Bangladeshi securities against foreign exchange remitted from abroad.

Features

 Non-resident portfolio investors have to open a Non-resident Investors Taka Account

(NITA) with any authorized dealer in Bangladesh funding the purchase and easy
repatriation of the sales and income proceeds.
  Securities can be purchased only through a member/registered broker of the stock
exchange. E.g. LankaBangla Securities Ltd. (LBSL). However, public issues not yet
listed in a stock exchange can be bought directly from the issuing company.

 For the purpose of trading securities, investors need to open a security account/trading
account with stock broker listed with the exchanges. E.g. LBSL

 Funds from NITA can be used to purchase shares and securities listed in a stock
exchange.

 The balances in this account are freely remittable abroad in foreign exchange.

Eligibility

 Non-Resident individuals (Foreigners and NRBs).

 Foreign intuitions.

 Institutions located abroad which are owned by NRBs.

5. IPO (INITIAL PUBLIC OFFERING)

It is no longer an "Inept Process Offline" rather it has become "Instant Purchase Online".

Investment in IPO was never as easy as it is now with LBSL. You don’t need to stand in the
line for hours with your application. Rather, with the online interface provided by LBSL, you
can invest in IPO online irrespective of your position. For investing in IPO online, just select
the IPO and your IPO will be processed automatically. In other words, once you submit your
IPO application form, we will take care of the rest. Also you can come physically in our
office and fill the IPO application form, we will do the rest for you.

Benefits of LBSL IPO

 No paper work if applied online

 Don’t have to stand in long queue under the sun and rain

 Through BEFTN (Bangladesh Electronic Fund Transfer Network), you can instantly
transfer and withdraw fund

 Successful or unsuccessful application will be notified via e-mail and no hassle for
collecting refund warrant or share allotment letter

 The whole process will be ended within 21 days

 No hidden charges

 No processing fees
- IPO application process

- Those who want to apply for IPO "Offline"

KEY STRENGTHS

 Excellence

LankaBangla Investments Limited takes pride in the quality of its people and the collective
track record they represent. From the time of its inception LBIL has made the best effort to
attract and retain the best minds in the business and investments, with broad-ranging
expertise in primary market operation, equity analysis, portfolio management, private equity,
leveraged finance, restructuring, M&A, corporate advisory and many other disciplines.

 Support

LBIL is able to harness investment banking opportunities for our clients and add value to
their pursuit of competitive advantage, productivity and profitability at a domestic and
regional level. We will stay focused and relentlessly pursue our promise of excellence.
Staying on the course in good times and bad times to achieve our goals, we will stay strong in
the face of new challenges by being flexible - continuously adapting and improving. As a
subsidiary of LankaBangla Finance, LBIL is backed by its wide range of financial service
providing expertise. LBIL sees opportunities in corporate, institutional and investment
banking via the building of synergistic alliances among businesses with that of the
LankaBangla Finance and taking brokerage service from LankaBangla Securities Limited,
the top broker in country.

 Integrity

LBIL practices uncompromising integrity and ethics in all of its dealings. Backed by LBIL’s
rigorously specified and documented code of ethics and professional conduct, LBIL
employees are always properly aware about the most updated laws and regulations regarding
capital market and other operations. LBIL truly believes that acting ethically is imperative to
build an efficient and well structured capital market and it’s mandatory for the employees of
LBIL to be properly aware and abide by the rules and regulations of governing body as well
as act according to the code of conduct of LBIL.

 Trust

By orienting our interests with those of our clients, LBIL has become a trusted partner for
retail investors, institutional investors and business partners. Many of the top institutions in
country value and trust LBIL as their prime business partner and corporate-financial advisor.
Advisory clients recognize that we bring a deep understanding of their strategic objectives
and a commitment to provide effective solutions to all assignments.

 Clients First

From its earliest days, LBIL has come to believe that client’s interest comes before
everything else. Clients first stand for professionalism, trust and a devotion to excellence. It’s
the clients for which we are here all time and it’s the most important motto of LBIL to serve
our clients in a way that maintains their best interest.
MILESTONES

Incorporation of the Company 5th November, 1996

Commencement of Business 5th November, 1996

Registration of First Subsidiary (LankaBangla Securities Limited) 3rd July, 1997

Licensed as Financial Institution by Bangladesh Bank 30th October, 1997

Signing of First Lease Agreement 30th March, 1998

Issuance of First Credit Card 16th August, 1998

Launching of MasterCard 5th September, 2005

Listing on Dhaka Stock Exchange 17th October, 2006

Listing on Chittagong Stock Exchange 31st October, 2006

Trading of shares in Stock Exchanges 1st November, 2006

Commencement of Operation of Chittagong Branch 10th February, 2007

Registration of Second Subsidiary (LankaBangla Asset 16th July, 2007

Management Company Ltd.)

First disbursement of Domestic Factoring 11th December, 2007

First disbursement of Mortgage Loan 18th February, 2008

Commencement of Operation of Sylhet Branch 27th April, 2009

Licensed as Primary Dealer 23rd November, 2009

Issuance of First VISA Card 24th November, 2009

First Participation in the Auction of Govt. Securities as Primary 1st December, 2009
Dealer

Registration of Third Subsidiary (LankaBangla Investments Ltd.) 29th March, 2010

Approval of Right Issue by SEC 31st January, 2012

Signing of Agreement with Leads Corporation for Bank Ultimus 10th January, 2012
(CBS)

Commercial Launching of Khatungonj Branch, Chittagong 8th March, 2012

Commercial Launching of Narsingdi Branch 28th January 2013

Commercial Launching of Comilla Branch 3rd February, 2013

Commercial Launching of Jessore Branch 13th February, 2013

Commercial Launching of Banani Principal Branch 12th November, 2013

Commercial Launching of Dhanmondi Branch 11th December, 2013

 3. ::::::INTERNAL SERVERS::::::
LankaBangla Securities Limited have five internals servers. They are as follows.

ORDER MANAGEMENT SYSTEM

(OMS)

• TradeXpress

COMMUNICATION SYSTEM

• Microsoft Lync

WEB PORTAL

• iBroker
• Financial Portal

BACK OFFICE

• Bluechip

ENTERPRICE RESOURCE PLANNING

• Cloud
 ORDER MANAGEMENT PROCESS

LankaBangla Securities Ltd (LBSL) has launched their Order Management System
(OMS) with Chittagong Stock Exchange (CSE) through API to provide direct market
access (DMA) facility to the dealers as well as investors.
It offers multi-channel e-trading to its customers (web, mobile, and client server) and
advantages of multi asset class (Equity, Derivatives, Bond, Commodity etc) trading
option, smart order routing, multiple exchanges and cross border supported
application, MIS & centralized risk management.

TradeXpress-
Customers can enjoy Direct Marketing Access (DMA). It displays the trends and movements
of the price volumes live during trading period. It is a market ticker and a tool bar with the
shortcuts of features.
COMMUNICATION SYSTEM

The server that is used for internal communications is Microsoft Lync. It

is used to communicate with the employees any time . The employer
can have access to each and every employees desktop . File sharing,
multiple video conferrencing, texting and many more can be anytime.
 WEB PORTAL

The financial world around us is changing with an inevitable power of

information. The one who has it right on time acquires an ability to
change the world around him. The faster a person has the access to
information, the better decisions he makes. To cater to this demand,
we are the first to launch a full-fledged financial portal in Bangladesh.
This is a platform that will not allow you to leave the page for even
one second because you will not want to! Every possible information
that you might be requiring, LankaBangla Financial Portal brings that
at your desktop. From market news to DGEN graph and from
Economic Indicators to various Analyst Tools, everything is available
in this information hive. As the portal is updated on a real-time basis,
it will never let you fall behind.

i-Broker-
This is a financial web portal allows the Company to have detailed information about the
employees' financial position. Each employee has their unique user id where all their
information is stored.
Financial Portal-
Stock Exchange Statistics
BACK OFFICE

BlueChip- It will provide detailed information about the company,

investor information and financial report of the company
 ENTERPRICE RESOURCE PLANNING (ERP)

By consolidating its in-house Enterprise Resource Planning (ERP) system

and order management system on Oracle Database Appliance, LBSL
enhanced data visibility across the platform and enabled staff members
and customers to quickly access granular data, trading history and annual
statistical report, increasing their productivity and revenue opportunities.

Cloud-
It is a third party outsourcing which is a platform as a service , an infrastructure as a service
and a software as a service.
 4. ::::::TESA::::::
In trading LankaBangla Securities Limited uses software which is TESA. DSE trading
function is operating by the help of TESA (The Electronic Securities Architecture). It is a
trading software which is based on HP proprietary O/S & DBMS. TESA software is built for
the global securities markets. It uses fault tolerant computers, intelligent workstations and
client / server design techniques. This provides co-operative processing, high message
integrity, continuous operation and fully automatic recovery.

TESA's Application Programmatic Interface (API) is the gateway to the TESA system from
the outside world. All external devices connect through the API. The API provides the
translation between external devices and internal processes. This means that a new process
does not need to be written to support each new device, only the API needs to be modified.

TESA was developed considering distributed Database concept using MS-SQL Database in
MSA Plus replicating with HP NonStop SQL of Trading Engine for intra-day information.
MSA Plus is a Web Based Server Application running on the Member Server. Different
Terminals use this client application, MSA Plus, using Web browser as a GUI (Graphical
User Interface).

TESA SOLUTION BENEFITS

The TESA application suite derives significant advantages from being implemented on the
HP NonStop platform. The HP NonStop customers have benefited from these advantages.

 Fault Tolerance: One of the most important automation requirements for any stock
exchange system is continuous system availability. With most systems Fault
 Tolerance is created at the application level. Fault Tolerance is a fundamental design
feature of the HP NonStop architecture.
 Data Integrity: Data integrity is an integral feature of HP architecture. TESA employs
standard HP tools to achieve exceptional data integrity.
 Scalability: The ability of an exchange to accommodate extraordinary increases in
transaction volumes without loss of its Capital investment in automation is very
important. The HP NonStop Server is massively scalable due to Parallel processors.

PRINCIPAL FUNCTIONS OF TESA

 Market Information: Supplying all market information needed to formulate the buy
and sell decisions.
 Order Management: Accept, validate and store orders and quotes from broker
workstations and / or systems.
 Order Execution: Automatically executes orders when buy and sell prices match.
 Trade Reporting: Trade execution reports are provided to each trade participant, to
the settlement system and / or the depository and to the market.
 Index Calculation: Calculates and publishes market indices (DSE General Index &
Weighted Average Index.

DHAKA STOCK EXCHANGE- NASDAQ & FLEXTRADE

Today, Dhaka Stock Exchange is a hugely successful business with net assets exceeding Tk.
18 billion, with 250 brokering intermediaries, around 3.5 million CSD investor accounts and
having processed around 400,000 equity trades per day. Dhaka Stock Exchange has now
embarked upon its next stage of development of which upgrading the trading system was an
important part.

Prior to selecting the component parts of the new trading system, the leadership at the
Exchange had embarked upon a comprehensive and rigorous process of consultation of all
stakeholders including presentations to the Bangladesh Securities and Exchange Commission
and the entire broking community. The Dhaka Stock Exchange is grateful for the guidance
and advice provided by the Bangladesh Securities and Exchange Commission on this project.

The new trading system was delivered in record time of less than 9 months, brought about by
the dedicated work of the technical team at Dhaka Stock Exchange, supported by Dhaka
Stock Exchange’s world-class technology partners NASDAQ, FlexTrade, CISCO, HP,
VMware, F5, Emerson and Microsoft.

LankaBangla Securities has soft-launched trading software with Chittagong Stock Exchange
to provide direct market access to dealers and investors, it said in a statement yesterday. The
software known as Order Management System, launched for the first time in Bangladesh, is
different from the exchange-provided application. The system is an open platform to integrate
with other stock exchange trading engines. LankaBangla led the market into a new dimension
with the software as dealers and inventors can now place orders using real-time technical
analysis and risk management, said Muinul Islam, chief technical officer and director of
LankaBangla. Mohammed Nasir Uddin Chowdhuary, managing director of LankaBangla
Finance, inaugurated the new trading system. The system offers multi-channel e-trading to its
customers (web, mobile and client server).

NASDAQ

Nasdaq is a leading provider of trading, exchange technology, information and public

company services across six continents. Through its diverse portfolio of solutions, Nasdaq
enables customers to plan, optimize and execute their business vision with confidence, using
proven technologies that provide transparency and insight for navigating today’s global
capital markets. As the creator of the world’s first electronic stock market, its technology
powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities
transactions and LankaBangla Securities Limited is one of them. Nasdaq is home to more
than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000
corporate clients.

FLEXTRADE

Founded in 1996, FlexTrade Systems is the industry pioneer in broker-neutral algorithmic

trading platforms for equities, foreign exchange and listed derivatives. With offices in North
America, Europe and Asia, FlexTrade has a worldwide client base spanning more than 175
buy- and sell-side firms, including many of the largest investment banks, hedge funds, asset
managers, commodity trading advisors and institutional brokers. LankaBangla Securities
Limited uses this software .
 5. ::::::CONCLUSION::::::
AML & Anti Terrorist Financing

The Board Directors of LankaBangla Securities Limited (LBSL) views money laundering
prevention as an integral part of its risk management strategy and not simply as a standalone
requirement that is being imposed by the regulator. Money laundering prevention is not
viewed in isolation from other business systems and needs of LBSL.

In recognition of the fact that financial institutions are particularly vulnerable to money
launderers the LBSL Board has developed a policy against which it will assess the adequacy
of the internal controls and procedures to counter money laundering.

The Anti-money Laundering policy and Guidance notes on prevention of money laundering
and combating financing on terrorism reflects the Board of Directors commitment to comply
with the Money laundering Prevention Act 2012, Anti-Terrorism (Amendment) Act 2013,
Bangladesh Bank Circulars, Instructions and other related local and international regulations.
It spells out senior management's responsibility in Anti Money Laundering Compliance and
develops awareness at all levels of the entity regarding the importance of the LBSL's Anti
Money Laundering Strategy.

LBSL is firmly committed to building a customer base and its vigorous Know-Your-
Customer and Due Diligence procedures are designed to ensure that the company deals only
with Legitimate Customers, performing Legitimate Financial Transactions. LBSL will not be
a party to or in any manner handle or process funds which may be proceeds of unlawful
activities.

LankaBangla Securities Ltd launched the OMS software

LankaBangla Securities Ltd has successfully soft launched their Order Management System
(OMS) with Chittagong Stock Exchange through API to provide DMA (Direct Market
Access) facility to the Dealers as well as investors. This is the first time in Bangladesh to
provide DMA through Broker House instead of exchange provided application. It offers
multi-channel e-trading to its customers (web, mobile, client server) and advantages of Multi
Asset Class (Equity, Derivatives, Bond, Commodity etc) trading option, smart order routing ,
multiple exchanges and Cross Border supported application, MIS & centralized risk
management. It has ability to create interfaces to other systems such as accounting systems,
banking solutions and depository systems. and real time access charting with strategies,
indicators and patterns. The Algo trading (VWAP, TAWP, POV, IS etc) and STP-Gate/FIX
protocol supported system is the advanced option for the futuristic capital market. It requires
Ultra low latency bandwidth and configurable network architecture for Broker and Investors.
The LBSL OMS is the open platform to integrate with other stock exchange trading engine.
It is the new milestone for the capital market. LanakBangla Securities ltd leads the market
with new dimension by implementing the OMS. From now dealers and inventors can place
the order based on conditions and strategies using real time technical analysis and risk
management, added Mr. Muinul Islam, CTO & Director of LBSL.

LankaBangla Securities signs purchasing deal of Oracle Database Appliance(ODA)

with Aamra Technologies.

Aamra technologies limited and LankaBangla Securities Limited signed a deal at Lanka
Bangla premises on 30th April 2013. Under the deal, aamra technologies shall provide Oracle
Database Appliance Solution to Lanka Bangla Securities. This single box solution is
introduced for the first time in Bangladesh. Mr. Sharful Alam, Chief Operating Officer along
with other senior officials from aamra technologies limited and Mr. Mohammad Nasir Uddin
Chowdhury, Managing Director, Mr. Wali Ul Islam, CEO and Director along with other
senior officials from Lanka Bangla Securites Limited were present at the occasion. Lanka
Bangla Securities will be benefited by enjoying payment as per their growth i.e. they could
purchase as many licenses in the future and make single payment per license. The
deployment time of this solution is only 6 hours, thus saving considerable time.The Oracle
Database Appliance enables to take advantage of the world's most popular database - Oracle
Database - in a single, easy-to-deploy and manage system now supporting virtualization. It's a
complete package of software, server, storage, and networking that's engineered for
simplicity; saving time and money by simplifying deployment, maintenance, and support of
database