(Disclosure: I am market making in the shares of Bombay Stock Exchange)
Equity derivative turnover at BSE has grown substantially to over Rs 116 lakh crore so far in the current fiscal, from year-ago levels, as the exchange has put in place new measures including technology systems for faster trades.
The exchange had recorded trades amounting to about Rs 50 lakh crore, during the April-October period in fiscal 2013-14.
In the last six months itself, the orders per day at BSE has grown nearly three times from 15 crore per day to 45 crore per day, helped by a faster technology.
In terms of volumes, the trades on the exchange also surged to nearly 30 crore in the first seven months of current fiscal as against 16.80 crore in the year-ago period.
BSE, a top exchange globally for the number of listed companies, had upgraded its technology platform to Bolt Plus for all its segments earlier this year.
Following this, the equity derivative segment value on the bourse has stood at Rs 19-24 lakh crore on a monthly basis, as against Rs 5 lakh crore in April.
Number of derivative contracts also surged from 1.5 crore in April to more than 5 crore in the subsequent months.
“BSE implemented new technology in April 2014 which provides response time of 200 micro-seconds with a capacity of 500,000 orders per second.
“It is faster than any exchange by ten times or more in India giving significant advantage to the investors who trade on BSE vis-a-vis other exchanges,” BSE CEO Ashish Chauhan told PTI.
Noting that it had been only six months since the new system was implemented, Chauhan said: “Even within this short period of six months, number of orders per day on BSE has gone up from 15 crore per day to 45 crore per day”.
According to Chauhan, many Indian members and even foreign brokerages who were not trading on BSE earlier have started connecting to the new system.
“We believe even now many exchange technology vendors have not changed their technology to interact with high speed and scale system like the one BSE has implemented at 200 micro seconds.
“We believe it will take some more time for old technology vendors to change to the new faster technology… Only 20 per cent vendors seem to have changed their systems yet. Once the balance 80 per cent technology vendors change their system to become faster to match BSE system, it will perhaps see more than 200 or 300 crore orders per day on routine basis,” he added.-from BS