Special Services Provided by Dhaka stock exchange (DSE)
PREAMBLE
Globally the developments in information & communication technologies (ICT) have created a new instance in the securities market operations. Stock Exchanges all over the world have realized the potentiality of ICT and inclined to the electronic trading systems. It was understood by DSE that technology would ensure transparency, timeliness and satisfaction in customer service.
Considering those DSE introduced Automated Trading System on 10th August 1998.In other words, the trading floor moved right into the member's office premises where an investor started to place buy/sell orders. Considering market growth the Automated Trading System was upgraded two times. The recently Upgraded Trading System was started from 21st December, 2008.
HARDWARE
DSE Automated Trading System (HP NonStop S7806) is running on fault tolerant, high available, scalable and maintainable Mainframe Server. Previously DSE established the TANDEM NonStop K204 System on September 1998 and on August 2005 it was replaced with highly scaleable HP NonStop S7802.
DSE upgraded the Trading System again on 21st December, 2008. The existing HP NonStop S7806 Server is highly fault tolerant to the fact that no single component failure will halt the system.
Its constituent parts are hot swappable, and upward compatible; components can be added or removed while the system is running and any compatible new upgraded will work with the system. All disk drives are mirrored so, if any of the disk crashes the exact copy of the data is available at online.
Moreover the connecting path for every disk whether it is primary or mirror is also redundant. In every case, minimum two peripheral devices exist. All the components are working active - active load balancing procedure . To ensure better power quality we have ensured high end UPS's with long durable backup capability, two instant backup generations and other electrical devices.
NETWORK (LAN / WAN)
All the Member (238 members) Server Applications (MSA) are connected with NonStop HP S-Series Server through either DSE LAN or WAN connectivity. Each member has one or more Trader Work Station (TWS). The TWSs are being connected to the Trading Server via respective MSA through LAN and WAN connection.
DSE outsourced MetroNet Ltd., DNS Ltd. , X-Net Ltd., Dhaka Com Ltd., Ranks ITT, Link-3, Royal Green Online Ltd. etc Network Service Providers (NSP under WAN Expansion Project).
Now-a-day members can establish a main office or branch offices to their remote location and can trade smoothly by using different media ADSL, Optical fiber and Radio Link from Dhaka and other important cities such as Gazipur, Narayanganj, Comilla, Hobiganj, Chittagong, Sylhet, Khulna, Barisal, Rajshahi, Bogra at the same time.
Three DSE branch offices located at Chittagong, Sylhet and Khulna are connected via BTTB's DDN link. We also used another connectivity for redundancy for the DDN link. We have a plan to reach the DSE branches in same way.In case of trade interruption due to serious hardware, software, network failure or telecommunication disruption at the Brokerage houses, there is a provision to allow traders to trade at DSE Contingency Trading floor.
SYSTEM SOFTWARE
The system software is HP Proprietary NonStop KERNEL and includes the database as part of the operating system thereby eliminating the layer typically found in most Database Management Systems (DBMS). NONSTOP SQL handles the Database functionalities, which is simply a different operational session for the operating system. The proprietary nature of the system software arguably enhances system security.
The system software treats all its hardware resources as objects and is thus entirely message driven. This then allows application software to be deployed using client / server architecture providing shared data processing between the central server and the user workstation. The central trading system resides in the Stock Exchange premises, which is running 24 hrs in a day & 365 days in a year.
APPLICATION SOFTWARE
The application, which runs in DSE for trading, is called TESA (The Electronic Securities Architecture). TESA has two parts: MSA (Member's Server Application) & TWS (Trader workstation). MSA is the "Gateway" between the traders and the Stock Exchange, which manages all the transactions and database operations between the traders and the Trading Engine. TWS is the Front-end Application closer to investors, where they can submit Buy/Sell orders for their desired securities.
TESA (The Electronics Securities Architecture) is the Trading software (Based on HP proprietary O/S & DBMS).It has developed in view of Distributed Database system In the client site it is being using SQL as local Database .Trading Software is MSA & TWS. In STSD (Signal trader Single Database) system both MSA & TWS are running on a Windows 2k Professional /XP Professional workstation and for MTSD (Multiple trader Single Database) MSA install in a Windows 2k Server & the TWSs are in different Windows 2k Professional /XP Professional workstation-using members in house LAN
TESA ARCHITECTURE
TESA software is built for the global securities markets. It uses fault tolerant computers, intelligent workstations and client / server design techniques. This provides co-operative processing, high message integrity, continuous operation and fully automatic recovery. This co-operative mechanism enables very high speed processing which is essential for today's electronic markets.
TESA's Application Programmatic Interface (API) is the gateway to the TESA system from the outside world. All external devices connect through the API. The API provides the translation between external devices and internal processes. This means that a new process does not need to be written to support each new device, only the API needs to be modified.
SOLUTION BENEFITS
The TESA application suite derives significant advantages from being implemented on the HP NonStop platform. The HP NonStop customers have benefited from these advantages.
Fault Tolerance: One of the most important automation requirements for any stock exchange system is continuous system availability. With most systems Fault Tolerance is created at the application level. Fault Tolerance is a fundamental design feature of the HP NonStop architecture.
Data Integrity: Data integrity is an integral feature of HP architecture. TESA employs standard HP tools to achieve exceptional data integrity.
Scalability: The ability of an exchange to accommodate extraordinary increases in transaction volumes without loss of its Capital investment in automation is very important. The HP NonStop Server is massively scalable due to Parallel processors.
TESA FUNCTIONAL MODEL
Client / Server: TESA's Client / Server architecture enables an efficient allocation of computing resources and provides easily modified user-friendly interfaces. TESA workstations operate under Windows 2K/ XP professional and can function either as servers on a broker's network or as workstation. The brokers use these to perform trading and settlement activity.
PRINCIPAL FUNCTIONS OF TESA
Market Information: Supplying all market information needed to formulate the buy and sell decisions.
Order Management: Accept, validate and store orders and quotes from broker workstations and / or systems.
Order Execution: Automatically executes orders when buy and sell prices match.
Trade Reporting: Trade execution reports are provided to each trade participant, to the settlement system and / or the depository and to the market.
Index Calculation: Calculates and publishes market indices (DSE General Index & Weighted Average Index.)
Market Access: Provide exchange members with efficient affordable GUI-based tools for accessing the market.
MARKETS: Four types of market at DSE
Public Market: In this market instruments are traded in normal volume
Spot Market: Instruments are traded in normal volumes under corporate action if any.
Odd lot Market: Odd lots of all Instruments are trade in this market
Block Market: Instruments are traded in bulk volume.
TRADING SESSIONS
TESA conducts trading in-5-phases.
Enquiry: In this session Brokers can logon to the system. No order will be submitted in this session. No trade will be executed. Only previous orders can be withdrew in this session
Opening: The Opening is a pure, single-price auction. All buy and all sell orders are compared and calculate the open-adjust price. No trades will be executed in this session
Continuous Trading: During this phase, participants enter orders and immediate execution or for inclusion in the book. Automatic matching and execution takes place based on best price/ first in, first out trading rules
Closing: Closing prices are calculated and disseminated to market participants
Enquiry: Market will be closed in this session & other facilities like the previous enquiry session.
MARKET CONTROL
The Market Control Workstation allows the exchange administrative staff to control the operation of the market, e.g.
Session Control: Opening & closing market via interactive control or by preset timers.
Validation Parameters: Setting and viewing parameters that control the trading engine validation e.g. tick size, Circuit Breaker, Circuit Filter, Market lot, Price protection Percentage.
Messaging: Allows the dissemination of company announcement data and general market administrative massages.
MARKET INFORMATION
Market Information is a real-time market data system. It collects, manages, generates and stores information relating to trade instruments and issuing companies. Market Information is responsible for-
Collecting Real-Time Market Information: Bids, offers, last sale (i.e. most recent trade price and volume), book and other data are gathered via the Trading engine. It supports TESA's automated and manual trading modules and can process the trades of external and off-market systems.
Collecting company Information: All information supplied by the listed companies are maintained in the TESA database.
Generating Market Statistics: TESA generates market indices on a real time basis. It generates other statistical information such as Price.
BROKER SUPPORT
Research and Enquiry: This module provides brokers access to the local Broker Support and TESA databases for enquiries and research purposes.The multi-windows environment allows users to simultaneously view orders, market and trades. Broker Support offers Stock Exchange members two configurations; standalone and multi-user. Both configurations maintain a database consisting of information generated by the TESA Server and the local system.