DSE to upgrade its trading capacity by year-end
Monday, 29 September 2008
Kayes M Sohel
The Dhaka Stock Exchange (DSE) is set to revamp its automated trading system in line with its plan to expand capacity.
The country's prime bourse has already undertaken a project to be implemented in phases to upgrade the electronic trading system, making available an electronic 'order book' facility.
Member firms of the DSE execute orders at a given price by pushing a button under the automated trading system. Actual prices, rather than bids and offers, are being posted in the order book, making trading fairer.
After upgradation, the DSE will be able to handle 0.15 million transactions per day from the existing capacity of 0.1 million by December this year and 0.25 million by 2010.
Currently, the bourse handles 50,000 to 60,000 transactions on an average per day.
"The upgradation does not end here. It is a continuous process considering the present growth of the market," said Salahuddin Ahmed Khan, chief executive officer of the DSE.
He said, globally, the use of information and communication technology (ICT) has created a new instance in the operation of securities markets as it ensures transparency, timeliness and satisfaction in customer service.
The DSE has introduced automated trading system on 10 August, 1998 with initial capacity of 15,000 transactions per day through the installation of a TANDEM NonStop K2204 mainframe server.
In 2005, the capacity of the system was enhanced to 50000 transactions per day by installing a HP NonStop S7802 mainframe server (running with 2 processors).
And the system was further upgraded in 2007 to around 0.10 million transactions per day. The existing DSE ATS running on the HP NonStop S7804 mainframe server (running with four processors).
"The equipment set up in the third upgradation is swappable and compatible. Components can be added or removed without causing any interruption in the operation of the system," said ASM Khairuzzaman, chief technology officer of the DSE.
The HP NonStop S-series server is being used in almost all the leading stock exchanges in the world including New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE) and London Stock Exchange (LSE), he added.
Khairuzzaman said more than 1200 computers of 200 member servers are connected to the main server through DSE wide area network (WAN) connectivity for facilitating trading operation.
The bourse is currently operating its trade by establishing an expanded WAN setup using radio link, fiber optics covering districts include Dhaka, Chittagong, Rajshahi, Barisal, Sylhet, Khulna, Bogra, Hobiganj, Narayangonj and Gazipur.
The DSE has only equity market in which bond debenture and mutual funds are traded simultaneously. But it has a plan to introduce the new trading system in which equity , bond , derivative and short sale markets will have the provision for security lending , settlement through auction and so on.
It also has a plan to keep the automated trading system trouble-free with a view to boosting the investor's confidence up in the capital market.
Under the plan, the trading capacity per day will be enhanced to 0.50 million by 2011. The system will also have the capacity to handle 10,000 traders IDs.
As part of the process, a committee has been formed comprising experts from Bangladesh University and Engineering Technology (BUET) and Dhaka University.
The DSE application software named TESA (The Electronic Securities Architecture) , provided by the Cambridge Solution Limited, Chennai, India, was developed on 32-bit application architecture for the global securities markets. It has high processing speed, high message integrity and fully automatic recovery.
Since its introduction of the electronic trading system, the DSE faced several trading disruptions due to technical fault. On March 2 this year, the trading was suspended for more than four hours due to technical fault in its automated transactions, causing sufferings to the investors.
The Dhaka Stock Exchange (DSE) is set to revamp its automated trading system in line with its plan to expand capacity.
The country's prime bourse has already undertaken a project to be implemented in phases to upgrade the electronic trading system, making available an electronic 'order book' facility.
Member firms of the DSE execute orders at a given price by pushing a button under the automated trading system. Actual prices, rather than bids and offers, are being posted in the order book, making trading fairer.
After upgradation, the DSE will be able to handle 0.15 million transactions per day from the existing capacity of 0.1 million by December this year and 0.25 million by 2010.
Currently, the bourse handles 50,000 to 60,000 transactions on an average per day.
"The upgradation does not end here. It is a continuous process considering the present growth of the market," said Salahuddin Ahmed Khan, chief executive officer of the DSE.
He said, globally, the use of information and communication technology (ICT) has created a new instance in the operation of securities markets as it ensures transparency, timeliness and satisfaction in customer service.
The DSE has introduced automated trading system on 10 August, 1998 with initial capacity of 15,000 transactions per day through the installation of a TANDEM NonStop K2204 mainframe server.
In 2005, the capacity of the system was enhanced to 50000 transactions per day by installing a HP NonStop S7802 mainframe server (running with 2 processors).
And the system was further upgraded in 2007 to around 0.10 million transactions per day. The existing DSE ATS running on the HP NonStop S7804 mainframe server (running with four processors).
"The equipment set up in the third upgradation is swappable and compatible. Components can be added or removed without causing any interruption in the operation of the system," said ASM Khairuzzaman, chief technology officer of the DSE.
The HP NonStop S-series server is being used in almost all the leading stock exchanges in the world including New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE) and London Stock Exchange (LSE), he added.
Khairuzzaman said more than 1200 computers of 200 member servers are connected to the main server through DSE wide area network (WAN) connectivity for facilitating trading operation.
The bourse is currently operating its trade by establishing an expanded WAN setup using radio link, fiber optics covering districts include Dhaka, Chittagong, Rajshahi, Barisal, Sylhet, Khulna, Bogra, Hobiganj, Narayangonj and Gazipur.
The DSE has only equity market in which bond debenture and mutual funds are traded simultaneously. But it has a plan to introduce the new trading system in which equity , bond , derivative and short sale markets will have the provision for security lending , settlement through auction and so on.
It also has a plan to keep the automated trading system trouble-free with a view to boosting the investor's confidence up in the capital market.
Under the plan, the trading capacity per day will be enhanced to 0.50 million by 2011. The system will also have the capacity to handle 10,000 traders IDs.
As part of the process, a committee has been formed comprising experts from Bangladesh University and Engineering Technology (BUET) and Dhaka University.
The DSE application software named TESA (The Electronic Securities Architecture) , provided by the Cambridge Solution Limited, Chennai, India, was developed on 32-bit application architecture for the global securities markets. It has high processing speed, high message integrity and fully automatic recovery.
Since its introduction of the electronic trading system, the DSE faced several trading disruptions due to technical fault. On March 2 this year, the trading was suspended for more than four hours due to technical fault in its automated transactions, causing sufferings to the investors.