The system will facilitate lot-free trading
The Dhaka Stock Exchange will launch a new trading system, replacing the old one, on Thursday that will allow lot-free share trading at the bourse with various upgraded data features, DSE officials told New Age on Friday. The premier bourse, following a regulatory order to replace its existing system, on March 21 signed agreements with NASDAQ OMX, an American multinational financial services corporation, for purchasing a matching engine and with FlexTrade, a US-based multinational company, for order management system.
The bourse was scheduled to launch the trading system by October this year but failed to do so due to technical reason.
A DSE official said, ‘The bourse has completed all the procedures to replace the existing outdated system.’
The new trading system along with the matching engine is now ready to be launched after successful completion of mock-trading from November 25, he said.
He said the new trading system would allow investors to place any amount of buy and sales order for shares, which is known as lot-free share trading, and that would bring an end to the odd-lot share trading-related hassles investors faced.
The execution capacity of the existing matching engine is 5 lakh trades that holds the bourse to allow lot-free share trading, the official said.
As the new matching engine is capable to execute 20 lakh trades, so there is no problem for the bourse to allow lot-free share trading, he said.
As per the existing process, investors are supposed to trade shares in lots.
The composition of lot differs from company to company as 10 shares of some companies make a lot while it takes 50 shares for others.
Sometimes dividends given by companies make fraction of lot and it becomes a hassle for investors to sell such shares at the odd-lot market at relatively lower prices.
The DSE official said that under the new trading system indices would change based on each and every transaction which facility is absent in the old system.
In the existing system, indices of the bourse change in five minutes interval based on share prices.
On the other hand, the new trading system of the bourse will not accept any order like short-selling and that will automatically reduce manipulative share trading to some extent, the DSE official said.
As the server of the bourse will preserve all the investors’ data, brokerage houses will be allowed to update investors’ fund position within a certain period of time (like 15 minutes) during the trading hours, he said.
Besides, upper ceiling and lower ceiling for sales order for certain scrips can be placed for indefinite period in
the new trading system, the DSE official said.
He said sales and buy order ratio with number would be shown on the board that would give investors better view about investors’ attention to certain scrips.
Tabs can be opened as many as the users’ demand and the price of every scrip will be shown in graph with various types of analytical data, he said.
The new trading system, however, will bar investors from trading through different branches of a certain brokerage house for security purposes, he added.
The new automated trading system of the bourse will facilitate trading of all products at the bourse.
The DSE at present facilitates trading of equities, mutual funds, debentures and bonds.
The bourse is also working to launch exchange traded funds and some other derivative products keeping in mind the new trading system.
-With New Age input
