NEAT Trading

System
Offline Order Entry
With this facility, an user can prepare an order file in a specific
format outside the trading system. Then the file can be uploaded
in the system for entering those orders.

Reprint Order/Trade Confirmation Slips

Although the order and trade slips for `confirmation',

`modification', 'rejection' and `cancellation' slips can be printed as
and when a particular operation is performed. However, the user
can reprint these slips later during the trading day by using this
option.
Order modification and cancellations

Order modification and cancellation functionality can be

performed only for orders which have not been fully or
partially traded (for the untraded part of partially traded
orders only) and only during market hours.

S.No. SHIFT+ FUNCTION KEYS FUNCTION

1. SHIFT+F1-Cancel Order Cancellation of all pending orders

2. SHIFT+F2-Order Modification Modification of all pending orders
 Trade Modification
 1. The user can use trade modification facility to request for
modifying trades done during the day.
 2. The user can request the Exchange to modify only the trade
quantity field. Moreover, the new quantity requested must be
lower than the original trade quantity.
 3. The user can request for trade modification either from the
previous trades screen or by using the function key[F8] provided
in the workstation.
 4. Trade Modification request is sent to the Exchange for
approval and message to that effect is displayed in the message
window. The counter party to the trade also receives this
message. The counter party then has to make a similar request
for the same modified quantity on the same trading day. Once
both the parties to trade send their respective trade modification
requests, the Exchange either approves or rejects it. The
message to that effect is displayed in the message window.

Trade Cancellation
 Same as Trade Modification [Except point 2.]
Basket Trading
1. The purpose of Basket Trading is to provide NEAT
users with a facility to create offline order entry file
for a selected portfolio.
2. The User then allocates an amount to the portfolio
by mentioning the amount in the 'Amount' edit box.
The amount entered is in lakh and must be less than
or equal to Rs. 3000 lakh.
3. If the amount entered is not sufficient to buy/ sell a
complete basket, a message "Insufficient amount for
creating the basket" is displayed.
4. The amount mentioned in the 'Amount Edit' Box is
divided among the securities of the portfolio,
depending on their current market capitalisation,
and the amount allocated per security is used to
calculate the number of shares to be bought / sold.
 All the orders generated through the offline order file are priced at the available market price.

If the portfolio contains a security which is suspended/not eligible in the chosen market then an error message is displayed on the screen.

Quantity of shares of a particular Portfolio basket is calculated as under:

Allocation amount of a = Amount * Market Capitalisation of the security

security in basket Current Market Capitalisation of the portfolio

where Current Market Capitalisation = Summation [Last Traded Price (Previous close
price if it’s not traded) * Number of Issued Shares]
 Index Trading
 This facility enables the user to buy/sell
securities that comprise the Index, presently
only “Nifty”. In fact this is a Basket Trading
where user has to specify the total amount he
wants to invest. The Host End divides the input
amount mentioned in the Amount Edit Box
among the securities of Index according to
their weightage, and generates orders priced
as market orders.
 Index Trading
 Quantity of shares of a particular security of
NIFTY is calculated as under:
 Allocation amount of a = Amount * Market Capital for the security
 security in index Current Market Capitalisation of the Index

 where Current Market Capitalisation =

Summation of Last Traded Price (Previous close
if any share
 of the Index not traded) * Number of Issued
Shares]
Square Off
 A recently added feature for the user to Square
of his position. This can be done by clicking
the new option Square Off provided in the
screen.
 When user clicks on Square off, an offline file

will be generated containing counter orders

which will square off the position of that
particular user.
 Positions can be selected PRO/CLI wise, and

also for individual clients.

 Order Management
 Active & Passive order
 When any order enters the trading system, it is an
active order. It tries to find a match on the other side
of the books. If it finds a match, a trade is generated.
If it does not find a match, the order becomes a
passive order and goes and sits in the order book.
 Order Book
 Separate order books for separate market.
 Each order has a unique order no. & time stamp on it.
 If match is not found, then the orders are stored in the book as per Price-Time
priority.
 Best price for a sell order is – The lowest price; and best price for a Buy order
is – The highest price.
 Buyback orders are identified by putting ‘*’ [asterix] mark against them.
 For RETDEBT orders book type selected is ‘RD’.
Quantity Freeze
All orders with very large quantities are sent for Exchange approval. If the
quantity for the order is greater than x% of the issue size of the security or is
greater than Rs. x value of the order (‘x’ is as specified by the Exchange)
whichever is less, then the order is sent as a quantity freeze to the Exchange
for approval. The Exchange may either approve or reject the quantity freeze
request.

Quantity Freeze parameters:

(a) 0.5% of the issue size of the security or

(b) value of the order is around Rs. 2.5 crores or

(c) a global alert quantity limit of more than 25000 irrespective of the
issue size of the security, whichever is less.
Circuit Breaker

Circuit breakers are like electrical fuse-it controls excess volatile

conditions by temporary halting trading.
The Exchange has implemented index-based market-wide
circuit breakers with effect from July 02, 2001.
 In de x -b a s e d m a r ke t wid e c irc uit b re a ke r

The index-based market-wide circuit breaker system applies at 3 stages

of the index movement, either way viz. at 10%, 15% and 20%.

These circuit breakers when triggered bring about a coordinated trading

halt in all equity and equity derivative markets nationwide. The market-
wide circuit breakers are triggered by movement of either the BSE
Sensex or the NSE S&P CNX Nifty, whichever is breached earlier.
Price Bands for individual security.
As specified by exchange it can be 2% / 5% / 10% / 20% on the
basis of Previous Closing Price.

No price bands are applicable on: scrips on which derivative

products are available. In order to prevent members from
entering orders at non-genuine prices in such securities, the
Exchange has fixed operating range of 20% for such securities.

The price bands for the securities in the Limited Physical Market
are the same as those applicable for the securities in the
Normal Market.

For auction market the price bands of 20% are applicable.

Bhav copy:
Bhav copy is downloaded on a daily basis. It is downloaded 2 times .
First one is downloaded approximately 20 mins after Market close; and the second
One 20 mins after Post Closing Session.Only the last seven bhavcopy files are stored
in the reports directory.

Reports:

The corporate manager receives reports with extension coo, col, ctd (printable
format) and cod, cld, ctt (comma delimited format).

The branch manager receives reports with extension boo, bol, btd (printable
format) and bod, bld, btt (comma delimited format).
Internet Broking

SEBI Committee has approved the use of Internet as an Order Routing System
(ORS) for communicating clients' orders to the exchanges through brokers.
NSE launched internet trading in early February 2000. It is the first stock
exchange in the country to provide web-based access to investors to trade
directly on the exchange. The orders originating from the PCs of the investors
are routed through the Internet to the trading terminals of the designated
brokers with whom they are connected and further to the exchange for trade
execution. Soon after these orders get matched and result into trades,
the investors get confirmation about them on their PCs through the same
internet route.

Wireless Application Protocol (WAP)

SEBI has also approved trading through wireless medium on WAP Platform.
NSE.IT launched the Wireless Application Protocol (WAP) in November 2000.
This serves primarily retail investors who are mobile and want to trade from any
place when the market prices for stocks at their choice are attractive through
their handheld devices.