financial system and information system

FINANCIAL SECURITIES AND INFORMATION SYSTEM

By: Dhruv Kashyap

Financial securities

 An instrument that, for a stock, shows ownership in a company

for a bond, indicates a creditor relationship with a firm or with a federal, state, or local government; or signifies other rights to ownership

Collateral used to guarantee repayment of a debt.

Types of securities : Shares Mutual funds Foreign currency (forex trading )

History of transaction

Share Certificate is a written document signed on behalf of a corporation, and serves as legal proof of ownership of the number of shares indicated

CURRENT SITUATION (ISSUES)

Stock Exchange

Stock exchange is place where trading of all financial securities took place

Technology at NSE

NEAT is a state-of-the-art client server based application

All trading information is stored in an in-memory database to achieve minimum response time and maximum system availability for users

(TAP) Trading Access Point – it facilitates IT Infrastructure consolidation and routes the orders and trades between Client and Server in an optimized protocol

NSE today can handle up to 15 million trades per day in Capital Market segment

Technology at BSE

BOLT BSE On-line Trading (BOLT) This totally automated, screen-based trading software in

securities was put into practice nation-wide within a record time of just 50 days

BOLT has been certified by DNV for conforming to ISO 27001:2005 security standards

The capacity of the BOLT platform stands presently enhanced to 8 million orders per day

BSEWebx.co.in BSE has also introduced the world's first centralized

exchange based Internet trading system, BSEWEBx.co.in. The initiative enables investors anywhere in the world to trade on the BSE platform

Brokerage solution

ODIN™ Program Trading is a special trading application that facilitates auto-execution of the trades based on the selected strategies

Option to select touchline or weighted average price for calculation of Spread available

Option to specify the Tick size by which the order should be modified

Electronic-mutual fund

e-Mutual Fund is a browser based software application intended for use by Distributors of Mutual Funds

The software facilitates integration with the trading front end as well as with Mutual Fund BackOffice system

Currency exchange solution

FX-Direct™ is a state-of-the art online matching and dealing platform for inter-bank foreign exchange trading that facilitates real-time, anonymous deal matching currently for Spot USD/INR trades between banks in the country

 Increased transparency Default Spot Configuration Market Snap Shot Performance

IMPACTS OF CHANGE DUE TO INFORMATION TECHNOLOGY

customer, industry, government

Enables automatic calculation and execution of complex arbitrage spread strategies without the need for any form of human intervention

Application performs complex calculations based on the predefined parameters on a continual and real-time basis

Eliminates any opportunity loss that arises if the same actions are to be performed manually

Enables Members to execute strategies for Proprietary Trades or on behalf of their clients

Enables Members to run multiple strategies in a single application Management Information Systems (MIS) in Finance have been

widely adopted both by corporations as well as governments They are information systems with capacity to maintain large data

bases enabling organizations to store, organize and access financial information easily

These systems are credited with increasing financial transparency, efficiency and accountability

Compliance with Government regulations as well as auditing requirements is also easier because the records are accurate and provide a permanent historical map of transactions that can be verified.

Avoidance of insider trading as well