Tag: BSE

(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

 

Hat Tip: Shivam Bose

Disclosure:I am market making in the shares of Bombay Stock Exchange

Having begun with a humble background of functioning under banyan trees, India’s leading bourse BSE is now eyeing a slot among the world’s most technologically advanced exchanges and is targeting ten-times faster trades on its platform within three years.

Already, the exchange has made significant changes in its technology and has attained a response time of 200 micro-seconds for trades executed on its platform, BSE CEO Ashish Chauhan said.

The aim is to bring the response time further down to 20 micro-seconds within the next three years, Chauhan told PTI in an interview here.

Today 200 micro-seconds of response time puts us in top 5-10 per cent of the exchanges of the world in terms of the ability to give he response time. It is not only about the speed but also about scalability that is the ability to take order, he said.

“Today we are able to handle 500,000 orders in a second at the response time of 200 micro seconds. If you are able to take large orders, your response time should not suffer,” he said, while adding that proper safeguards are also in place to guard against any risks attached with high-speed trading.

Chauhan said: “We have also implemented a framework that ensures that this is lowest cost, but highest in terms of technology. We have used open source software. We have utilised the technology prowess of India to ensure that we are able to get more from the same hardware.

“We also implemented in April 2014 the new technology we had acquired from Deutsche Boerse and in 5-6 months that it has been in practice our number of orders per day has gone up already three times. Earlier it was 12-15 crore orders on best of the days, and today we are recording 40-45 crore orders a day on a regular basis.”

–from DigitalFC

Disclosure:I am market making in the shares of BSE

Leading stock exchange BSE is hopeful of listing a total of 100 companies on its SME platform by December-end after launching the segment for small enterprises more than two years ago.

Currently, 66 companies are listed on BSE’s SME platform having an aggregate market capitalisation of nearly Rs 7,900 crore. These firms raised about Rs 550 crore through initial public offerings (IPOs).

“Basically we’ve got a very good response on SME as in 2 years time we’ve now got 66 companies listed and in next two months 20-25 more companies will get listed so effectively we’ll have 100 companies listed by this year end on the BSE SME platform itself,” BSE managing director and CEO Ashish Kumar Chauhan said at the sidelines of an Assocham event.

Many good companies from areas like manufacturing, metals, information technology and others are coming to list on the BSE’s SME platform, he said.

In March 2012, BSE launched platforms for small and medium enterprises aimed at entities looking to raise equity capital after market regulator Sebi allowed such firms to get listed without an IPO.

It launched an institutional trading platform for this in November 2013. The NSE followed suit in September in the same year when its platform ‘Emerge’ went live.

According to the SME listing norms, a company would be eligible for listing if it has not completed 10 years after incorporation, and its revenue has not exceeded Rs 100 crore in any of the financial years.-from TOI