Stock exchanges to start mobile trading from October

Mumbai: As the Securities and Exchange Board of India (SEBI) has cleared the way for use of wireless technology in securities trading, stock exchanges are all set to start mobile trading from early October. All registered brokers will be able to trade from anywhere in the country through their mobile phones. Apart from this, clients can also place orders, view positions and view trades, reports K. Raghavendra Rao of Business Line.

Mobile trading will be facilitated on NOW software which will be provided free by NSE to its brokers, the exchange said. It further added that the market data will also be provided free on the brokers' cell phones.

There are two main counts on which the exchanges need to emphasize while testing the readiness of every technology, one is the strength of the data transfer process between the client and the server and the other one is the usage of the digital signature certificate. The digital signature certificate is the only legally valid digital certification approved by the Information Technology Act.

The major vendors of this technology include Financial Technologies, 3i Infotech, Omnesys and Technova Religare.

According to Ravi Jagannathan, Managing Director and Chief Executive Officer, 3i Infotech Consumer Services, only after obtaining a digital signature certificate, an investor can transact using his handset. It will take at least 10 days for the implementation of this system and in three-four years, around 40 percent of retail investors could be transacting using this mode, he added.

Investors who possess a digital signature certificate will be provided a small device called the crypto-token (a small pen drive), which will contain the private key to be used while placing an order. The server would immediately be able to recognize whether the transaction has originated from an authentic person or not by recognizing the private key.

Brokers, on their part, are also ready to offer these services to their clients. Brokers have to shell out cost of platform installation while usage costs would be borne by the client. 

Source - http://tinyurl.com/326ekv2

 

Sensex F&O on Frankfurt's Eurex from Oct 4

The Bombay Stock Exchange and the leading European derivatives exchange Eurex said on Wednesday that they will launch the Sensex futures and options on the Frankfurt-based bourse from October 4.

The new contracts will be denominated in US dollars and settled in cash. The futures will have maturity dates of the three nearest months, and the following March, June, September and December, the two bourses said in a joint statement in Mumbai.


"We are very pleased to be working with Eurex to develop a broader international investor base focused on the Sensex. The Sensex will now be trading during a larger portion of the global trading day, which will increase its appeal and value," BSE managing director and chief executive Madhu Kannan said.

"Moreover, we see growth of overseas liquidity in the Sensex as helping us to broaden and deepen the market for Sensex products within the country," Kannan added.

Two market-making schemes will be in effect until the end of December 2011 - one to support liquidity during the overlap of Indian and European trading hours and the other for the European market hours.

The expiry dates of the options will be in the three nearest calendar months, the next three quarters and two next semi-annual expiries. "By introducing futures and options on this prominent benchmark, we also will advance our efforts in the Asia- Pacific region by creating trading opportunities for customers seeking access to this fast-growing emerging economy," Eurex executive board member Peter Reitz said in a statement.

Eurex is one of the world's leading derivatives exchanges and is jointly operated by the Deutsche Börse and SIX Swiss Exchange. Eurex offers a broad range of international benchmark products and operates the most liquid fixed income markets in the world, featuring open and low-cost electronic access. Trading volume on the Eurex is over 1.5 billion contracts a year.

The Sensex tracks the daily performance of 30 of the largest and the most actively traded companies listed on the BSE, the oldest bourse in Asia.

Source - http://business.rediff.com/report/2010/jul/14/sensex-fando-on-frankfurts-eurex-from-oct-4.htm