maintenance procedure is cumbersome; it is distributed up to workstation level.
Maintenance: Deployment and maintenance is easier and centralized.
MSA Plus software maintenance is not required at workstation level.
6.2.6. TRADING SESSIONS (MSA PLUS):
M
SA PLUS 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 Only previous orders can be withdrawn in this session.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.
6.3. Online brokers:
I
n Bangladesh brokerage (Broker house) industry is dominated by domestic brokerage firms.Many local firms maintain extensive branch networks throughout Bangladesh. As of 2001, there were 58 brokers throughout Bangladesh with no branch offices. At that time there were no facilities of online trading in Bangladesh and automated trading was just about to launch.
After the year 2005 the DSE and CSE started giving the facility to the brokers to trade throughout Bangladesh. That was the first revolution in this industry, the number of broker houses rise up to 117 and among them almost 30 broker houses start working on opening branches in Dhaka city as well as in other districts. However, the total number of brokers jumps for the second time in 2007-2008 when the stock market continues with an upward trend. Between that times the number of brokers stood almost 200 with a number of 250
branches throughout Bangladesh particularly in Sylhet, Bogra, Rajshahi and Chittagong.
Finally in 2010, it reaches on its highest number of 220 broker houses with almost 400 branches. Today the numbers of broker houses are 238 with only around 200 branches and sub branches. It just became of the downward trend of the market.
The business practices of online brokers in Taiwan are discussed below.
6.3.1. Business practices:
A
stock or bond broker is an agent who acts as a mediator for personal or fund investing, being paid a commission based on the amount of trading. Small, or discount, market brokers generally facilitate trades without providing input. The last quarter of the 20th century saw a large number of discount brokerage firms and internet trading sites that allowed a wider segment of the population to get involved with trading with smaller commission prices.I. At sale limit order is an order with a specified price. An at sale limit order with a specified price at or more competitive than the final Indicative Equilibrium Price (IEP) (in case of buying, the specified price is equal to or higher than the final IEP or in case of selling the specified price is equal to or lower than the final IEP) may be matched at the final Indicative Equilibrium Price (IEP) subject to availability of eligible matching order on the opposite side.
II. Online brokers are offering low fees at about half the price for offline trading in order to capture market share in a short period of time. Many online brokers are still not making money in their online business.
III. A limit order will allow matching only at the specified price. The sell order input price cannot be made at a price below the best bid price, if available whereas the buy order input price cannot be made at a price above the best ask price if available.
IV. Online brokers also compete by offering quality customer services. They usually set up a customer service hotline to serve online investors. They also offer a personalized online interface and more functionality with investment and analysis tools.
V. A direct business transaction refers to the business transacted by an Exchange Participant who acts for both the buyer and the seller whether as principal or agent.
VI. A non-direct business transaction refers to the business transacted by two Exchange Participants one as buyer and the other as seller.
VII. Online brokers usually promote online business aggressively to attract new customers and build up reputation, even though the profitability of online trading is currently compressed by the low price and low user acceptance. This is to prepare for the future when online trading is expected to become the mainstream.
VIII. A pre-opening trade is a trade concluded before the commencement of the Preopening Session, including that concluded on the previous day but not recorded in the
Automatic order Matching and execution System (AMS).
IX. However, online brokers usually don‟t promote online trading services to their large customers. Instead, they usually assign a designated account executive to handle accounts of large investors in order to build a stronger bond with them.
6.3.2. Percentage share of online investor accounts among brokers:
T
he percentage share of online investor accounts is determined in a few online brokers because the present condition of Bangladesh‟s stock market is not good. Investors are losing their money & courage, and this expression of investors are negatively impacting the market& as well as the broker houses. The top five online brokers already share half of the market
total, leaving 212 online brokers to fight for the remaining market share .These top-five brokers are all major domestic securities firms. Their names are ICB(Investment Corporation of Bangladesh) , LankaBangla Securities Ltd., AB Bank Foundation (ABF), IDLC Securities Ltd. (ISL), DBL Securities Ltd. They have a long history and well-established brand name in Bangladesh. In addition, they maintain extensive branch networks as their main service distribution channels.