DSE online trading by Sept

Babul Barman Dhaka Stock Exchange (DSE) will start internet-based online trading system by September this year in an effort to woo millions of new investors and facilitate faster transaction, an official said Saturday. The country's premier bourse will start holding trial of the web-based trading from this week to test whether the software operating the system works glitch-free, said Ahsanul Islam Titu, senior vice president of the DSE. "We have already laid the MSA-plus (Member's Server Application) trading software to pave the way for online trading from different platforms by September system. The mock-test starts from Wednesday," he told the FE. With the launching of the web-based trading, a trader can buy and sell stocks by placing orders online to a brokerage firm. He can see the transaction instantly on his computer screen after the order is executed by the brokerage's server. Initially more than 100 brokerage houses will be able to start the 'mock-test' and by September all houses will be able to come under the online trading system fully, Mr Islam said. After the installation of MSA-plus software, the investors will get trading access to the DSE by using individual passwords from anywhere in the country and across the globe through the internet, he said. Mr. Islam said the DSE with a market-capitalisation of over US$30 billion and three million beneficiary owner (BO) account holders needs a faster web-based trading platform to facilitate share transaction and woo more investors. In the United States, the world's largest stock market, the NYSE, operates through one of the most sophisticated web-based system that allows investors to trade nearly 10 trillion worth of shares in a minute. "As the stock market is moving fast, it is necessary to introduce the online system to expedite trading from home and abroad," Mr. Islam said. Earlier, the DSE has set a self-imposed deadline to kick off fully online trading system by July this year. But lack of preparations by the brokerage houses delayed the launching. "Online trading system is a highly technical process. You can't rush things. It will take some time to implement the system fully," Mr. Islam added. The DSE has developed the online infrastructure for stock trading with the assistance of X-changing, an UK based IT Company. At present, stock trading in Bangladesh is carried out through brokerages in person or over telephone, but with the launching of the online system, share transaction will be a few clicks away of a personal computer or a smart-phone. Around 220 active brokers of DSE operate on the bourses through a network of more than 1,100 branches spread to 29 districts across the country. Akter H Sannamat, a chartered accountant and a stock expert, hailed the launching of web-based trading saying it would help DSE conduct faster trading, ensure transparency and bring more traders to its network. But he warned the launching of the system could immediately spike demand for shares as more investors will rush to the market. Sannamat said web-based trading would ease crowding at the brokerages as many investors will no longer need to place orders or conduct other transactions in person. "As a result, maintenance cost of the brokerage houses will come down significantly," he added.