internet trading service

Welcome Welcome toto

Chittagong Stock Exchange Limited Chittagong Stock Exchange Limited

Internet Trading System – ITSInternet Trading System – ITS

Mohammed Kamal Uddin JalalManager, Market Development

Brief Introduction to Chittagong Stock Exchange

CSE started operations in

1995 with Cry out Trading System.

Order and Trade Confirmation Diagram

Central Trading Server

InvestorInvestor

Investor

Broker’s Terminal

Broker’s Terminal

Broker’s Terminal

SylhetDhaka

Chittagong

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order

orderTrade

order

order

order

order

Confirmation

Confirmation

Confirmation

Trade

TradeIn 2004, CSE Introduced Internet Trading System.

After 2 years, in 1998 it switched to Automated Trading System for the first time in Bangladesh.

CSE Nationwide Trading Network

Internet Trading System (ITS)

Now you can -- Contact a licensed broker for

opening Account- Watch the current market

movement- Place buy and/or Sell orders

directly from your PC- Receive buy/sell confirmation

on line- Lodge complaints to CSE for

irregularities, if any

ITS facilitates you to access the stock market of Bangladesh from anywhere round the globe. This facility is developed for you only by Chittagong Stock Exchange in Bangladesh

ITS Network

CSE Intranet

InvestorBroker

Internet

CSE Web server

CSE Trade Engine

ITS Network Security

The Internet

Fire Wall

Mail Server

Web Server Web Server

Fire Wall

Trading System

CSE is Geographically Neutral

Bangladesh

Placing Buy/Sell order through ITS

Janata Bank & CSE

Exchange Network

Web /MailServers

CSE Tradin g Server

In vestor from Japan

In vestor from Lon don

In vestor from Dubai

Internetwww.bangladeshstockmarket.com

In vestor from NY

In vestor from KSA

Who are eligible Members to provide Internet Trading Services

SEC Registered Broker or Dealer

Minimum net capital balance not less than one lac Taka. No record of gross failure in the last one year.

Provides safekeeping services for the ITS Clients

Adequate computers and equipment, back up facilities for power supply and data storage capacity, capacity for handling data transfer and arranges for alternative means of communication.

Compliance Officer as per Rule 4 of the SEC

Only the client whose account is opened under this guideline shall be eligible to use ITS facilities.

The Member shall confirm CSE that it has entered into an agreement with the Client.

The member shall prominently display the names, registered numbers, license issue date and license expiry date in their web site.

The member shall ensure through web site or otherwise the dissemination of information meant for Investors’ protection such as rules and regulation affecting Client-Broker relationship, arbitration rules, Investors protection rules etc.

Have sufficient verifiable information about Clients and their introducers.

Confirmation note to the Client through email at the time specified in the CSE/SEC rules and regulations.

Proper risk management and shall be responsible for every trade executed.

An audit firm authorized by the Exchange only shall audit their accounts. The Exchange will publish a list of recommended auditor.

Broker applies for ITS registration

• A member fulfilling the eligibility requirements mentioned in regulation 3 may apply to the Board in the format at Annexure-A through the Chief Executive Officer (CEO) of CSE, for permission to operate Internet Based Trading Services for its designated  clients

Placing and validation of Orders• Clients having a valid account and agreement with the permitted member eligible to

place order through the ITS.

• Clients will receive a client code and password to access the ITS module.

• The password shall be the key to the access and the clients be liable for any misuse of the password. Misuse by any person in the permitted member house shall be prosecuted as per regular rules and regulation for investors’ protection.

• The Compliance Officer shall be responsible for setting the limit for trade for each and every account for both scrip and money. All orders placed will be checked by the limits set for the clients by the permitted member. If the order is within the limit, it will be routed to the CSE main trading system for matching according to set algorithm.

• The permitted member will be liable for setting trade limit for all the accounts. Any error or omission shall not indemnify the permitted member from the responsibility of settling any trade validated against wrongly set limit.

• The limit set by the member for the clients shall be in accordance with the Margin Rules 1999

• The system will only accept Limit Orders.

• Orders placed through the system, confirmation notes generated automatically will not need any manual signature.

Application Overview

• Web-based environment.

• Popular Internet based protocols.

• Depends upon the VECTOR system database

• This database is effectively shared between the VECTOR and ITS systems.

• Acts as the interface between the web-based investor and the VECTOR

Functional Scope of the System

www.bangladeshstockmarket.com

User Registration Form

Provides the details to be filled by Investor for his/her new registration request.

The User Registration screen is divided into six sections Browsing Details, Personal Details, Company Details, Communication Details, Broker Details, and Financial Details.

User Registration Form

User Registration Form

User Registration Form

User Registration

User Registration

Broker Accepts registration

Broker approves or rejects

Broker sets investors limit

Broker Sets limits for ITS client

Broker Sets limits for ITS client

Confirmation sent to investor

Investors log in

Scrip Profile

Investor can profile the maximum of 15 scrip for market picture through this screen.

Purpose-To profile the scrip for the Market Picture screen.

Market Picture

Get scrip profile

User’s own scrip profile

Add scrip to profile

View Market Picture

Get Quote

Investor can get the scrip details through this screen.

Get Quote

`Get Quote

Get Quote

Enter New Order

Investor can enter order though this screen.

Purpose-To place an order for trading.

Placing order and verification

Order Confirmation

Pending Orders

Investor can view his/her pending orders in Pending Order Screen.

View pending orders

Order deletion and modification

Rejected Orders

Investor can see his/her rejected orders though this screen.

Rejected orders

Returned orders

Offline Orders

Investor can view his/her offline orders in this screen.

Offline orders

Delete offline order verification

Trades

Through this screen Investor can see the trades belongs to him.

Trade Screen

Investor Limits

Investor can see his/her limits for trading through this screen.

Investor Limits

View and/or change profile

Modify investor profile

Change password

How you can trade from KSA?

Please browse www.bangladeshstockmarket.com

How you can trade from KSA?

Here you will find a list of Permitted Brokers . You may select any of them and contact through telephone, email or online.

- You have to fill up an Online ITS Account Opening Form as well as a hardcopy.

- Also to sign an Agreement with your selected broker.

It is the responsibility of the broker to approve the investors' registration, setting limit and assign specific scrip which the investors can trade. The broker will also give the Password for access.

As soon as your ITS broker provides you the Password and Trade Limit you can place your buy/sell orders through Internet.

How you can trade from KSA?

Broker/DealerCSE

T+1

T+3

Dhaka

Sylhet

How Transactions are Settled

Settlement Cycle

Chittagong

How you will Settle Transactions?You have to open a FC (Foreign Currency) Account along with Savings Account with any Scheduled Bank in Bangladesh or Non-Resident Investors’ Taka Account (NITA) so that you can settle obligations for your securities bought.

How to open a FC Account and Savings Account?

You can advise anyone of your family member or relative or friend to collect an FC & Savings A/C Opening Form from any Scheduled Bank in Bangladesh and to send it to you. Fill it up, enclose necessary documents and send it back to him/her. He/She will submit it to the Bank. You may nominate any one in Bangladesh as Mandate to operate your FC & Savings A/C. You can also request your broker for help in this regard.

You have to open a BO (Beneficiary Owners) Account, because your securities will be deposited in this account.How to open a BO Account?

Tell someone to collect a BO Account Opening Form from CSE Chittagong, Dhaka or Sylhet offices and send it to you. Fill it up, enclose photocopy of your passport, photographs and send it back to him/her. He/she will then submit it to CSE DP. You may give "Power of Attorney" to anyone in Bangladesh to operate your BO A/C. You can also request your broker for help in this regard

As Online Fund transfer to abroad is yet to be permitted by the concerned authority, you have to settle transactions in existing system.

Let us know the system with an example. Suppose, you bought 10 Islami Bank shares @ Tk 4300.

It means, You have to pay Tk 43,000 and will get 10 shares.

You will pay Tk 43,000 to your broker by Account Payee Cheque drawn from your Savings Account and your

broker will deposit 10 shares to your BO Account. You can directly send it or send by your nominated person residing in Bangladesh. In case, you give mandate to your nominated person, he/she can draw Cheque on behalf of you and pay to your broker.

How to Settle Transactions?

How to Settle Transactions?

We advise the e-investors to appoint an authorized person or arrange otherwise who can settle obligations with the brokers when the e-investor himself/herself is unable to do so due to residing outside Bangladesh or traveling or any other reason.

If you sell shares, you have to sign a Pay-in Slip and deposit to the concerned DP. You can directly send it or send by your nominated person residing in Bangladesh. In case, you give Power of Attorney to your nominated person, he/she can operate your BO Account on behalf of you.

CSE Help-Line

Chittagong Stock Exchange has set up a dedicated Cell for investors. You can easily reach the Cell for any sort of information regarding Stock market.

Investors Information CellYou can easily get help from this Cell over telephone, Fax, E-mail,

correspondence or visiting physically.

CSE Building1080, SK. Mujib Road, Agrabad C/A, Chittagong

Tele: 88 031 726972 (Direct), 88 031 714632-3, 720871-3 (Ext 128)Fax: 88 031 714101

Email: iic@csebd.com kuj@csebd.com

Website: www.csebd.com

Thank you