BOLT BSE On-Line Trading

System

Presentation by

Dilip OakDilip OakGen. Manager - DOT

Bombay Stock Exchange Ltd, Mumbai

AGENDA

Introduction to On line - screen based trading Need for screen-based trading Features of BOLT Checks & controls on BOLT Trading on BOLT - present & future Key statistics BOLT information provider Conclusion Question & Answer

Need for BOLT

Poor transparency15 days + settlement cyclePoor liquidityComputer & Network evolutionglobal trend - globalizationCompetitionFaster spread of equity culture

resulted in BSE’s Online Trading System (BOLT)

BOLT - BSE On Line Trading System

Features :

1. BOLT Architecture

– Powerful Back-end – HP 2 x NS16000 (Client server)

– Windows - NT Front end

– Efficient Network - Own VSAT HUB

– Total fault Tolerant - OLTP

– High Reliability and availability

– 80 x 146 GB Disks

2. Establishing reliable connectivity - Network

Ethernet Based

VSAT Based

Leased lines (MLDN)

3. Supported by

* Help Desk facility

* Contingency Pool

TYPES OF ORDERS

4. Orders

- Limit orders

- Market orders

- Hit/Take orders

- Odd lot orders

- Buy-back order facility

- Stop loss orders

Features of Orders

Retention , net position, oddlot Colour schemes, background colour Institutional ID - Client, Own, FI, WH Batch Entry - Orders / auction offers Total quantity & revealed quantity -

dripfeed

5. 6A / 7A Interactive trade confirmation

6. Control mechanism

- Daily circuit filters

- Capital Adequacy check (Intra-day trading limits)

- Gross Exposure check

- Trader-wise controls

- Yes or No - Binary control

- Exposure limit

- Buy - limits / sell - limits

- Scripwise control limits

- Groupwise control limits

- User activation / deactivation- User password authentication

7. Auction

- Sessions

- Offer entry

- Matching

- Auction Report download

8. Broadcast

- Market view

- Best five quotes

- Total depth - buy and sell

- Last traded rate & quantity

- Trades / values / volume

- Lower / upper circuit limit rate

& weighted Avg. rate

- Open / high / low / close

- Touch line - configurable

9. Total dematerialisation

- Exceptional Physical trades (Exit route)

- Complete Rolling settlement T + 2

10. On-line facility

- Sauda book

- Report downloading (dload)

- BSE News - Ticker facility

- Net position - scripwise /clientwise

- Trade / Broker query file download

- Derivative Touchline

Scrip Help

- Ex-dates

- Book Closure

- No Delivery period

- Standard Rate

- ISIN No.

- Dividend

- Special margins - buy / sell

11. Admin Terminal - Master Terminal

12. Country-wide SPREAD

- 400 cities

- 14500 terminals

- 900 members

13. Response Time

- Less than 1 seconds - will be reduced further

- Matching logic - rate & time stamp

- Confirmation of trades - display -

update suada book

- Refreshing touchline & market view

14. Trading Backed by Risk Management

- Trade Guarantee Fund

- Customer Protection Fund

- Margin Mechanism

- Daily margin

- VaR margin

- Volatality margin

- Mark to market margin, etc.

Downloading facilities Trade data Member query data / breakup data Net position (clientwise / scripwise) Auction Data (offers / D.O./Money statement /Entl. Rep) Settlement related data Money statement, delivery orders, margin, B/S etc. Daily price movement (Open/High/Low/Close/Value/Volume) Trade statistics Notices LSFD (Data /exe) No delivery / Margin data

Daily Trading Sessions on BOLT

Opening Session 08.45 a.m. To 09.00 a.m.

Log-in Session 09.00 a.m. To 09.55 a.m.

Continuous Session 09.55 a.m. To 03.30 p.m.

Closing Session 03.30 p.m. To 03.50 p.m.

Post Closing Session 03.50 p.m. To 04.15 p.m.

6A/7A / Member Query Session 04.15 p.m. To 05.30 p.m.

Check & controls on BOLT- Member level

- Registration / activation / de-activation (member TWS)

- Password mechanism thru unique user ID

- Master Terminal Concept (traderwise controls)

- Private view (modify / deletion of order )

- Capital adequacy / gross exposure check

- Hidden identity

- System level

- TMF for data integrity

- Scrip level

- Circuit filters

- Tick sizes

- Suspension of scrip

- Terminal / user level event log

Advantages of BOLT Transparency of trades Enhancement of market quality thru liquidity Reduction in settlement Risk (guaranteed settlement) Faster settlement T + 2 Improved access to sensitive information Effective dissemination of information thru DATA

FEED Simplicity in broker back office operations Increases geographical spread

Thank YouThank You