BOLTBOLT(BSC Online (BSC Online

Trading System)Trading System)

INTRODUCTION

The trading on stock exchange in INDIA used to take place through open outcry method without use of information technology for immediate matching or recording of trades.

This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity, and transparency NSE and BSE introduced nation wide online fully automated “SCREEN BASED TRADING SYSTEM”

SCREEN BASED TRADING

NSE’s screen based trading is known as NEAT-

National exchange for automated trading.

BSE’S screen based trading is known as BOLT-

Bombay online trading.

Ticker window

MECHANISM OF ONLINE TRADING

BSE has main computer which is connected through “VERY SMALL APERTURE TERMINAL”(VSAT) installed at its office.

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 VSATS.

HOW TO PLACE ORDER

An investor informs 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. The signal is directed to mainframe computer at BSE via VSAT at BSE’s office. A message relating to the order activity is broad casted to respective member.

To enter a buy order

BASIS OF OPERATION The online trading operates on the

strict basis of PRICE PRIORITY and TIME PRIORITY

HOW TO ENTER SELL ORDER

Same as the process involved in the placing of the buy order.

To enter a Sell order

LOGGING ON

On starting BOLT application, the logon screen appears with the following details.

USER ID TRADING MEMBER ID PASSWORD NEW PASSWORD

TERMINOLOGIES OF ONLINE TRADING

Snap quote:- feature available to get instantaneous market information on a desired security.

Active and Passive orders:- when any order enters the trading system, it is an active order. It tries to find a match on the other side of books. If it finds a match trade is generated, if does not finds match it turns to passive order which is stored in order book.

Circuit breakers:- Started implementing compulsorily from July 02, 2001. The circuit breakers will be operated at the three stages of INDEX movement, either way viz at 10%, 15%, 20%.

MOVEMENT TIME FREEZED

10% PRIOR 1pmAFTER 1pm

1 HOUR½ HOUR

15% PRIOR 1pmAFTER 1pm-2pmAFTER 2pm

2 hours1 hour

Freezed for the day

20% ANY TIME FREEZED FOR THE DAY

Market By Price

Ord Book- Pending traded canceled

Order Book

Trade Book

PPT PPT ByBy

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