D. Stock trading
Product information of listed stocks comes from the exchange and automatically updated in the trading system. IPO information needs to be manually entered into the trading system.
Currently there is no “stock search” function such as large market cap, high trading volume, high dividend rates, high ROE, etc. These kinds of “ranking” information are dependent on product attributes from the data source. We need to check what attributes are available then determine search keys.
Order types supported by the trading system are 100% dependent on the exchange. All the order types supported by the exchange are available and no other order types are supported. Currently, the exchange supports following order types; Limit price, Non-limit price, Special market, Market-to-limit, At-the-open, and At-the-close. Also, Immediate-or-cancel and Fill-or-kill conditions are supported by the exchange.
Good-till-date or Good-till-cancel orders are not supported by the trading system. Off-market hour orders (or after hour orders for the next trading date) are supported but order types are limited.
Order ticket as a report is not required but its raw data must be stored and kept available in the database
When settling trades, in case of using Cash account, cash is debited directly from customer’s bank account using ATS. On the other hand, in case of using Cash Balance account, cash is debited from the customer’s Cash Balance account. Because of ATS settlement charge, it is common to charge more commission to a customer in case of using Cash account (or less commission in case of using Cash Balance account.) SBITO’s commission / fee structure should be determined considering the bank charges.
Confirmation notice can be in electric format but paper confirmation should be sent to customers if they request it. In such case, we may charge extra fee for sending paper confirmation in addition to email notification. We should clearly state such conditions in the terms & condition of our account opening document.
E-tax receipt notice is a regulatory requirement and covered within the confirmation notice. It can also be in electric format. We should also consider sending E-tax receipt notice when charging fees other than trade commissions and collecting VAT together
In case of settlement failure when using Cash account, there is a certain rule / time limit to collect cash from the customer. After the time limit, purchased stock is sold off and penalty charges as well as trading profit / loss are debited from the customers Cash account.