Monday, October 19, 2009

About Technologies used in Colombo Stock Exchange

The CSE operates 3 main systems.

  • The Central Depository System
  • Automatic Trading System
  • Debt Securities Trading System
Automated Trading System of the Colombo Stock Exchange

The Colombo Stock Exchange operates a fully fault tolerant distributed architecture Trading System with event driven push technology which provides a robust platform for trading. The system consists of a collective group of programs working cohesively in a distributed environment that delivers the business functionality, which is easily maintainable. The order driven trading platform assures a transparent market and executes trades on price and time priority.

The Local Area Network has built in redundancy with dual network backbones, firewalls and Intruder Detection and Prevention systems for security adds to the robustness of the system. The wide area network also has dual links to broker firms through two independent communication service providers to ensure maximum uptime.

The Trading System commences trading with a pre-open session followed by an auction process for price discovery and proceeds to regular trading. The market is closed with the calculation of average closing price for each security taking into consideration the last one hour’s trading from the last trade.

The Exchange provides 2 mechanisms to process an order of an investor namely the ATS Front End (TFE) that has been provided by the Exchange to Broker Firms to input orders and the ATS Interface (ATSI) which interface third party order routing systems to the Trading System. Broker back office systems and broker internet order processing applications are interfaced to the trading system through the ATSI gateway.

The ATS Market Watch Front End (MWFE) provides the same facility as the TFE without the order entry function. The MWFE is provided to the Broker Firms and other market participants to monitor the market movement. An enhancement to the above is a Front End with automatic scrolling capability. This consists of two separate windows.

One window displays all trade executions whilst the other window displays security details. The screens scroll automatically and are updated dynamically. This facility is available at the Exchange and Broker Firms for investors to view trade executions and security statistics.

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