31 July 2014

BSE hails success of equity trading switch to DB's BoltPlus

11 April 2014  |  1188 views  |  0 Source: BSE

BSE has changed its trading system to the new trading system acquired from Deutsche Boerse from April 7, 2014 for its Equity segment.

Earlier, BSE had already implemented this system for Currency Derivatives on November 28, 2013, Interest Rate Futures on January 28, 2014, and Equity Derivatives on February 10, 2014. The platform is based on T7, the global trading architecture of Deutsche Boerse AG.

The New Trading System currently provides 200 micro seconds response time with a through put capacity of 5,00,000 orders per second. It is faster than any exchange in India by at least 10 times with through put capacity also higher by similar numbers. Despite the increase in speed, BSE doesn't intend to provide preferential treatment to members having co-location servers.

This is the largest ever technology transformation in India ever attempted where more than 900 broker members with more than 1 lakh branches have experienced the new trading system of BSE. By extension, several lakh users have been able to experience the new trading system. More than 50 vendors participated in this mammoth exercise over a period of 6 months to ensure a smooth transition for members and users.

Internationally, this is one of the smoothest technology transfer that has taken place. Most exchanges in India have not attempted technology change due to the apprehension that it may not work out. BSE had taken a call to implement new technology 2 years back and has successfully implemented this technology transfer.

Over the first 3 days of trading, more than 900 members have traded on this system which is close to the peak number of members we get on the BSE platform. Similarly, more than 286.6 million orders were entered in the new system which works out to an average of 4,000 orders per second and peak order entry observed was more than 18,000 orders per second. Such high peak rates on the third day of technology implementation were beyond expectations and suggest an excellent adoption of new technology by all market participants.

BSE's new trading platform provides India with a world class integrated tradading platform eco- system which will put Indian exchanges in the top 1 percentile of the trading platforms in the world in terms of speed and throughput.

This entire new technology platform has been built on open source software and commodity hardware which provides the lowest cost exchange operating framework to BSE as compared to any exchange of its size in the world.

BSE is currently considered the 4th largest index option exchange in the world, 4th largest currency futures exchange in the world, 5th largest currency options exchange in the world, 8th largest exchange in the world by number of orders and 14th in the world by market capitalisation. (Source: WFE)

The ranking of BSE is expected to improve substantially in many of these areas once the new system is adopted well and is implemented in all brokerage houses, in entirety.

BSE is pleased with the progress in technology transfer for the first 3 days.

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