c.

Market microstructure information for DSE

Trading mechanism: The open cry-out auction technique was used to launch DSE floor trading.
Trading is now fully automated, thanks to the DSE and the central depository. Bids/offers, depth,
and required broker details are all stored in today's automated trading environment and can be
retrieved for future reference.

Primary market of trading system

In primary market the following elements are observed:

 Initial public Offer (IPO)

 B/O Account
 How to apply for IPO
 IPO distribution system
 Refund warrant / allotment of IPO
 Sell / hold
 How an NRB apply for IPO
 What to know before applying for IPO

Secondary market trading system:

This is a secondary market — a trading market, and it is commonly referred to as the stock
exchange. It's designed to give the security business liquidity and marketability.

It's a stock exchange where you can purchase and sell shares.

Procedure of secondary market trading:

 Contact with a stock broker

 Open a client account and a B/O account
  Observe first and study the market.
 Place your buy / sell order.
 Get buy / sell confirmation.
 You can hold it or sell it if price increases.
 If you hold it you may get cash dividend or stock dividend.

Circuit breakers:
A circuit breaker is a mechanism that allows a regulator to automatically suspend a stock's
trading for the day if its price exceeds predetermined levels.
A circuit breaker is put on the company's share price for the next day when it posts corporate
declarations
Floor brokers:
Members of exchanges that execute deals on the exchange floor for clients are known as floor
brokers.

A floor broker's purpose is to compete with other traders to obtain the best price for their client.

Financial institutions, high-net-worth individuals, and huge enterprises are some of the most
common clients for floor brokers.

Advanced computers and trading algorithms let today's floor traders compete with fully
automated trading platforms.

Trading sessions. -

There shall be five sessions of trading period, namely: -

(a) Pre-opening session;

(b) Opening session;

(c) Continuous or Regular trading session;

(d) Closing session; and

(e) post-closing session.

The following are the functions of trading sessions:

(a) Pre-opening session. - During this session, members are only allowed to place orders and
signal their readiness to purchase and sell specific securities.

Orders placed during this session are stored in the system rather than being sent to the execution
engine. Members will be able to trade the previous day's closing price and index of various
securities during this session.

B) opening sessions: This is the session in which the opening price of securities is calculated.
The calculation is based on orders submitted to the system during the Pre-opening session. This
session determines the opening price of equities. When securities are not traded, the last closing
price of that security becomes its opening price. In this session, no admission orders will be
accepted or granted.

(c) regular trading session: Trading session that is continuous or regular.This session can be used
to enter orders, delete orders, and modify orders. In this session, orders are executed, and if any
order or part of an order is not or cannot be completed, that order or part of an order will be
saved separately and carried forward.

d) Closing session. During this time, the system no longer accepts orders. The weighted average
price of all trades in the final 30 (thirty) minutes before the closing session will be used to
establish a security's closing price. If no trade occurs during the above stated time, the closing
price will be determined using the weighted average price of the last 20 (twenty) trades
preceding the above 30 (thirty) minutes.

The opening price of the security shall be taken as the closing price if there has been no trade in
the security during the continuous trading session.

e) Post-closing session. - During this session, traders can execute any outstanding orders as well
as any new orders placed during the session. During this session, however, the trading engine
only accepts orders at the closing price. The closing price is used to execute all trades. During
this time, no quotes will be accepted.

Types of transactions. - Orders may be grouped or categorized based on the following, namely:-
(a) Price; (b) Volume; and (c) Validity
Different trading board of DSE:

The Dhaka Stock Exchange (DSE) has established an Alternative Trading Board (ATB) for
trading unlisted company securities, private placement bonds, sukuk, and open and mutual funds.
The company's securities must be in demat form in order to be listed on ATB, and companies
that can comply with the provisions of IFRS, IAS, and the Companies Act, 1994 will be
considered eligible for listing on the board, according to the statement. Bonds and sukuk issued
through private placements will be eligible securities in the ATB. Meanwhile, the BSEC has
approved the listing of 14 bonds on the exchange.

ATB is an automated transaction system that welcomes all types of investors. The transaction
settlement method will be comparable to that of the DSE's current transaction system.