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Contains

Capital market in Bangladesh BACKGROUND OF DSE

VISION

Mission

Objectives

The major functions of DSE

Management Of Dhaka Stock Exchange

Categorization of listed company

Settlement System Main Board as on February 2011

Sectoral Performance - February 2011

DSE Sectoral market capital – February 2011

DSE Sectoral turnover –February 2011

Value and quantity of turnover of DSE – February

2011

Market performance February 2011

DSE Index Movement March 10 to February 11

Performance of DS 20 - February 2011

Top 20 Companies by Market Cap- February 2011

Top 20 Companies by EPS - February 2011

Daily Market Data - February 2011

Monthly Performance for one year (DSE Performance

- February 2011)

Sectoral Price Earnings Ratio - February 2011

Overview of Global Market

DSE automated trading system Algorithm of DSE indices



Capital market in Bangladesh

Bangladesh capital market is one of the smallest in Asia but the third largest in the

south Asia region.

It has two full-fledged automated stock exchanges namely Dhaka Stock Exchange

(DSE) and Chittagong Stock Exchange (CSE) and an over-the counter exchange

operated by CSE.

It also consists of a dedicated regulator, the Securities and Exchange Commission

(SEC), since, it implements rules and regulations, monitors their implications to

operate and develop the capital market.

It consists of Central Depository Bangladesh Limited (CDBL), the only Central

Depository in Bangladesh that provides facilities for the settlement of transactions

of dematerialized securities in CSE.

BACKGROUND OF DSE

The Necessity Of Establishing A Stock Exchange In The Then East Pakistan Was First

Decided By The Government When, Early In 1952.It Was Learnt That The Calcutta

Stock Exchange Had Prohibited The Transactions In Pakistani Shares And Securities.The Provincial Industrial Advisory Council Soon Thereafter Set Up An Organizing

Committee For The Formation Of A Stock Exchange In East Pakistan. A Decisive Step

Was Taken The Second Meeting Of The Organizing Committee Held On The 13th

March ,1953. In The Cabinet Room, Eden Building ,Under The Chairmanship Of Mr. A .Khaleeli, Secretary Government Of East Bengal , Commerce, Labor And Industries

Department At Which Various Aspects Of The Issue Were Discussed In Detail. The Then

Central Governments Proposal Regarding The Karachi Stock Exchange Opening ABranch At Dhaka. , Did Not Find Favour With The Meeting Who Felt That East Pakistan

Should Have An Independent Stock Exchange . It Was Suggested That Dhaka

Narayanganj Chamber Of Commerce & Industry Should Approach Its Members For Parchase Of Membership Cards At RS.2000 Each For The Proposed Stock Exchange.



The Location Of The Exchange It Was Thought Should Be Either Dhaka Narayanganj Or

Chittagong . An Organizing Committee Was Appointed Consisting Of Leading

Commercial And Industrial Personalities Of The Province With Mr. Mehdi Ispahani AsThe Convener In Order To Organize The Exchange.

The Chamber Informed Its Members And Members Of Its Affiliated Associations Of TheProceedings Of The Above Meeting ,Requesting Them To Intimate Whether They Were

Interested In Joining The Proposed Stock Exchange. This Was Followed By A Meeting ,At The Chamber Of About 100 Persons Interested In The Formation Of The Exchange

On 07.07.1953. The Meeting Invited 8 Gentleman To Become Promoters Of The

Exchange With Mr. M Mehdi Ispahani As The Convener And Authorized Them To DrawUp The Memorandum And Article Of Association Of The Exchange And Proceed To

Obtain Register Under The Companies Act.1913. The Other 7 Promoters Of The

Exchange Were Mr. J M Addision-Scott, Mr. Mhodammed Hanif, Mr. A C Jain, Mr. A K Khan , Mr M Shabbir Ahmed And Mr. Sakhawat Hossin.

It Was Also Decided That Membership Fee Was To Be Rs.2000 And Subscription RateAt 15 Per Month. The Exchange Was To Consist Of Not More Than 150 Members. A

Meeting Of The Promoters Was Held At The Chamber On 03.09.1953 When It WasDecided To Appoint Orr Dignam & Co., Solicitors To Draw Up The Memorandum And

Articles Of Association Of The Stock Exchange Based On The Rules Of Stock Exchange

Existing In Other Countries And Taking Into Account Local Conditions.

The 8 Promoters Incorporated The Formation As The East Pakistan Stock ExchangeAssociation Ltd. On 28.04.1954. As Public Company.On 23.06.1962 The Name Aws

Revised To East Pakistan Stock Exchange Ltd. Again On 14.05.1964 The Name Of East

Pakistan Stock Exchange Limited Was Changed To "Dhaka Stock Exchange Ltd."

At The Time Of Incorporation The Authorized Capital Of The Exchange Was Rs. 300000Divided Into 150 Shares. Of Rs. 2000 each and by an extra ordinary general meeting

adopted at the extra ordinary general meeting held on 22.02.1964 the authorised capital

of the exchange was increased to Tk. 500000 divided into 250 shares of Tk. 2000 each.The paid up capital of the exchange now stoods at Tk.460000 dividend into 230 shares of

Tk. 2000 each. However 35 shares out of 230 shares were issued at TK. 80,00,000 only

per share of TK. 2000 with a premium of TK. 79,98,000 .

Although incorporated in 1954, the formal trading was started in 1956 at Narayanganjafter obtaining the certificates of commencement of business. But in 1958 it was shifted

to Dhaka and started functioning at the Narayangonj chamber building in Motijheel C/A.

On 1.10.1957 the stock exchange purchase a land measuring 8.75 Kattah at 9F Motijheel

C/A from the Government and shifted the stock Exchange to its own location in 1959.

Legal Control

Legal Control



VISIONFunction of DSE

Regulating the market structure through proper rules and strictcompliance by members.

Expansion of CSE trading network to cover 504 thanas.

Introduce Book Building system in Bangladesh capital market.

Introducing derivative market

Continuous promotion of stock investment throughout thecountry.

Create opportunity to cross border trading with SAFE countries.

Introduce Global Depository Receipts (GDR)

Mission

To create an efficient and transparent Market facilitatingentrepreneurs to raise capital, so that it acceleratesindustrialgrowth for over all benefit of the economy of the country.

Objectives

Develop a strong platform for entrepreneurs for raising capital;

Provide an investment opportunity for small and large investors;

Develop a transparent market ensuring investor's interest;

Provide a fully automated trading system with most modernamenities to ensure: quick, easy, accurate transactions andeasily accessible to all.



The major functions of DSE

- Listing of Companies.(As per Listing Regulations).

- Providing the screen based automated trading of listed Securities.

- Settlement of trading.(As per Settlement of Transaction Regulations)

- Gifting of share / granting approval to the transaction/transfer of share outside thetrading system of the exchange (As per Listing Regulations 42)

- Market Administration & Control.

- Market Surveillance.- Publication of Monthly Review.

- Monitoring the activities of listed companies. (As per Listing Regulations).

- Investors grievance Cell (Disposal of complaint bye laws 1997).- Investors Protection Fund (As per investor protection fund Regulations 1999)

- Announcement of Price sensitive or other information about listed companies through

online.

Management Of Dhaka Stock Exchange

The management and operation of Dhaka Stock Exchange is entrusted on a 25 members

Board of Director. Among them 12 are elected from DSE members, another 12 are

selected from different trade bodies and relevant organizations. The CEO is the 25th ex-officio member of the board. The following organizations are currently holding positions

in DSE Board:

• Bangladesh Bank

• ICB

• President of Institute of Chartered Accountants of Bangladesh

• President of Federation of Bangladesh Chambers of Commerce and Industries

• President of Metropolitan Chambers of Commerce and Industries

• Professor of Finance Department of Dhaka University

• President of DCCI (Dhaka Chamber of Commerce and Industry)

Mr. Md. Shakil Rizvi is the current president of DSE.

Chief Executive Officer: Satipati Moitra

Chief Operating Officer: Md Zahurul Alam

Chief Technology Officer: A. S. M. Khairuzzaman

General Manager & Secretary: Shaikh Mohammadullah



General Manager (Finance & Accounts): Jiban Chandra Das, FCA

Categorization of listed company

Here is a complete picture of the settlement system for all of our 427 Instruments in Five (5) groups in

the Four (4) markets.

A Group: Number of Instruments are 338 (150 + 8D + 22M + 158TB), Here D for Debentures, M for

Mutual funds & TB for Treasury Bonds (Trading in Public, Block & Odd-lot Market with trade for trade

settlement facility for scrip only through DSE Clearing House on T+1, T+3 basis). "A" and "DA" are

marked in BASES columns for Non-Demat & Demat instrument respectively in our TESA Trading

Software.

B Group: Number of Instruments are 44(Trading in Public, Block & Odd-lot Market with trade for trade

settlement facility through DSE Clearing House on T+1, T+3 basis). "B" and "DB" are marked in BASES

columns for Non-Demat & Demat instrument respectively in our TESA Trading software.

G Group: Number of Instrument is 0 (Trading in Public, Block & Odd-lot Market with trade for trade

settlement facility through DSE Clearing House on T+1, T+3 basis). "G" and "DG" are marked in BASES


N Group: Number of Instrument is 11(Trading in Public, Block & Odd-lot Market with trade for trade

settlement facility through DSE Clearing House on T+1, T+3 basis). "N" and "DN" are marked in BASES


Z Group: Number of Instruments are 34(Trading in Public, Block & Odd-lot Market with trade for trade

settlement facility through DSE Clearing House on T+1, T+9 basis). "Z" and "DZ" are marked in BASES

columns for Non-Demat & Demat instrument respectively in our TESA Trading software



Settlement System

A, B, G and N: T+1 (Pay in day)

T+3 (Pay out day)

Z Category: T+3 (Pay in day)

T+7 (Pay out day)

Spot: T+0 (Pay in day)

T+1 (Pay out day)

Foreign trade T+5 (Settlement between buyer and seller)

T+6 (Member submit the documents along with

custodian bank certificate to the clearing house

within 10.00 am)



Main Board as on February 2011

Main Board as on February 2011

Total Number of Listed Securities 476

Total Number of Companies 229

Total Number of Mutual Funds 33

Total Number of Debentures 8

Total Number of Treasury Bonds 203

Total Number of Corporate Bonds 3

Total number of Shares/Certificates: (No. in mn)

Total Number of Shares & Mutual Fund Certificates of AllListed Securities* 15,673

Total Number of Shares of All Listed Companies 13,268

Total Number of Certificates of All Listed Mutual Funds 2,393

(No. in ' 000)

Total Number of All Listed Debentures 409

Total Number of All Listed Gov. T-Bonds 4,672

Total Numberof All Listed Corporate Bonds 7,336

Total Issued Capital of : (Figure Tk.in mn) (FigureUS$ in mn)

All Listed Securities 719,316 10,105.59All Companies Shares 220,543 3,098

All Mutual Funds 23,183 326

All Debentures 140 2

All Listed Govt. T-Bonds 468,113 6,576

All Listed Corporate Bonds 7,336 103



Total Market Capitalization of: (Figure Tk.in mn) (FigureUS$ in mn)

All Listed Securities 2,349,353 33,006

All Listed Companies Shares 1,843,471 25,899

All Listed Mutual Funds 30,477 428

All Debentures 576 8

All Listed Govt. T-Bonds 468,113 6,576

All Listed Corporate Bonds 6,716 94

Conversion Rate: BDT against USD 71.18

* Total No. of Shares/Share Capital / Market Capital includes Bonus /Right of shares.

Sectoral Performance - February 2011

DSE Sectoral Performance - February 2011

SectorMarket Capitalisation

in mn% of total

Market Cap

Turnover Tk. in mn % of total

Turnover February January February January

Financial Sector

Banks 561,617.62 863,038.59 29.72 38,847.87 66,308.47 33.81

Financial Institutions 260,221.58 358,110.22 13.77 19,244.78 25,902.01 16.75

Insurance 102,568.39 159,153.82 5.43 6,064.29 11,614.28 5.28

Mutual Funds 30,476.60 39,774.31 1.61 4,069.48 10,281.43 3.54

Total 954,884.19 1,420,076.95 50.54 68,226.42 114,106.19 59.39

Manufacturing

Foods 44,488.99 60,815.97 2.35 1,831.64 3,191.74 1.59

Pharmaceuticals 150,418.71 197,966.28 7.96 4,711.34 8,308.06 4.10

Textile 72,982.86 113,573.28 3.86 8,465.27 15,211.57 7.37

Engineering 89,177.70 142,247.97 4.72 6,833.76 8,150.19 5.95

Ceramics 29,921.39 55,384.39 1.58 2,009.12 3,343.06 1.75

Tannery 11,498.95 15,685.41 0.61 629.03 1,121.21 0.55

Paper & Printing 668.80 1,084.90 0.04 6.35 6.88 0.01

Jute 563.36 880.90 0.03 34.94 45.39 0.03

Cement 43,816.28 66,265.68 2.32 2,012.51 2,973.30 1.75

Total 443,537.05 653,904.79 23.47 26,533.96 42,351.40 23.10

Service & Miscellaneous

Fuel & Power 207,119.69 292,616.55 10.96 8,518.04 12,584.36 7.41

Service & Real Estate 16,242.27 27,113.91 0.86 724.62 1,238.21 0.63

IT 3,140.86 4,643.77 0.17 331.12 527.99 0.29

Telecommunication 188,906.97 320,426.20 10.00 3,547.66 5,053.28 3.09

Travel and Leisure 8,837.65 13,793.65 0.47 2,156.57 4,065.75 1.88



Miscellaneous 60,116.82 81,396.06 3.18 4,721.61 6,959.01 4.11

Total 484,364.26 739,990.14 25.63 19,999.61 30,428.60 17.41

Bond

Corporate Bond 6,716.23 3,990.11 0.36 127.11 83.05 0.11

Total 6,716.23 3,990.11 0.36 127.11 83.05 0.11

Grand Total 1,889,501.73 2,817,961.98 100 114,887.10 186,969.24 100

DSE Sectoral market capital – February 2011

DSE Sectoral turnover –February 2011



Value and quantity of turnover of DSE – February 2011



Market performance February 2011

DSE Index Movement March 10 to

February 11





Sl. No. Company

Mcap

Tk mn

% of

Mcap

Turnover

Tk mn

% of

Turnover

1 Islami Bank Bd Ltd 42,254.78 2.24 1,172.98 1.02

2 NBL 26,340.42 1.39 6,328.59 5.51

3 Prime Bank 30,961.33 1.64 2,293.19 2.00

4 Southeast Bank 24,483.19 1.30 2,461.75 2.14

5 Dhaka Bank 14,734.17 0.78 548.10 0.48

6 Uttara Finance 11,462.88 0.61 381.76 0.33



5 Islami Bank Bd Ltd A 42,254.78 2.24

6 BEXIMCO A 38,788.41 2.05

7 BSRM Steels Limited A 33,228.13 1.76

8 BATBC A 32,994.00 1.75

9 Pubali Bank A 31,302.18 1.66

10 Prime Bank A 30,961.33 1.64

11 Prime Finance & Invest. A 29,899.88 1.58

12 Summit Power Ltd. A 29,061.31 1.54

13 AB Bank A 28,895.93 1.53

14 Dhaka Electric Supply Company A 28,203.61 1.49

15 Export Import (Exim) Bank A 27,875.66 1.48

16 Power Grid Company of Bangladesh Ltd. A 27,801.43 1.47

17 NBL A 26,340.42 1.39

18 Southeast Bank A 24,483.19 1.30

19 BEXTEX Limited A 24,255.27 1.2820 Eastern Bank A 22,986.79 1.22



SL.

No.Company Name Category

Face

Value

EPS

Actual Tk

EPS

%

PE

Dividend

(%) as per

last AGM

1 Reckitt Benckiser(Bd.)Ltd. DA 10 41.90 418.99 18.64 750%

2 BOC Bangladesh DA 10 40.07 400.72 12.89 177%

3 1st ICB M.F. DA 100 385.24 385.24 25.44 310%

4 Renata Ltd. DA 100 365.21 365.21 28.68 60%, 25%B

5 BATBC DA 10 34.48 344.76 15.95 300%

6 Bata Shoe DA 10 32.85 328.51 14.49 220%

7 ACI Limited. DA 10 30.64 306.37 7.54 105%

8 Glaxo SmithKline DA 10 26.88 268.78 25.88 160%

9 Berger Paints DA 10 25.00 249.98 21.73 150%



10 BEXIMCO DA 10 21.62 216.20 10.84 60%B

11 Apex Adelchi Footwear Ltd. DA 100 188.03 188.03 14.54 35%

12 Marico Bangladesh Ltd. DA 10 16.45 164.50 26.79 25%

13 Atlas Bangladesh DA 10 16.19 161.85 16.13100%,

33.33%B

14 National Tea DA 100 156.78 156.78 28.48 20%

15 Padma Oil Co. DA 10 15.36 153.56 33.02 50%, 200%B

16 Aftab Automobiles DA 10 15.08 150.80 11.53 10%, 30%B

17 Heidelberg Cement Bd. DA 100 150.59 150.59 17.30 38%

18 LankaBangla Finance Ltd. DA 10 14.00 140.05 23.02 15%, 20%B

19 Aramit DA 10 13.80 137.98 20.21 15%, 50%B

20 IDLC Finance Limited DA 100 136.98 136.98 25.09 10%, 100%B

Daily Market Data - February 2011Market Data during February 2011

Date DGEN

ChangeDSI DSE 20 Securities

Traded

No. of

Trades

Volume of

Transaction

(Nos. in lakh)

Turnover

(Tk in mn)

Mkt Cap

(Tk in mn)In points In %

01/02/11 7,280.98(203.25) (2.72) 6,032.434,609.23 255 154,977 765 9,384.96 3,190,829.26

02/02/11 7,309.14 28.16 0.39 6,054.674,677.79 256 130,565 570 7,414.89 3,195,106.51

03/02/11 7,125.33(183.81) (2.51) 5,903.104,589.06 257 127,285 562 7,365.88 3,146,170.01

06/02/11 6,719.04(406.29) (5.70) 5,571.634,373.29 255 134,030 588 7,052.20 2,996,982.50

07/02/11 6,394.53(324.51) (4.83) 5,306.474,237.85 255 125,723 548 6,099.75 2,884,763.78

08/02/11 6,822.85 428.32 6.70 5,651.804,534.76 254 151,890 680 7,876.88 3,042,013.32

09/02/11 6,673.41(149.44) (2.19) 5,528.804,427.70 259 137,064 599 6,736.78 2,980,849.16

10/02/11 6,527.19(146.22) (2.19) 5,409.104,339.34 250 115,894 505 5,631.43 2,938,380.39

13/02/11 6,052.41(474.78) (7.27) 5,020.484,064.44 255 151,499 638 7,156.83 2,760,886.01

14/02/11 5,579.50(472.91) (7.81) 4,633.473,738.28 249 128,807 688 6,630.69 2,580,007.08



15/02/11 5,926.35 346.85 6.22 4,915.623,999.18 258 148,795 612 6,893.95 2,710,495.46

20/02/11 6,389.63 463.27 7.82 5,295.604,321.77 259 93,814 530 5,777.11 2,871,495.97

22/02/11 6,173.39(216.24) (3.38) 5,119.724,094.58 252 171,487 805 9,629.59 2,785,241.82

23/02/11 6,018.48(154.90) (2.51) 4,989.904,044.91 248 122,350 510 5,736.74 2,726,898.73

24/02/11 5,800.94(217.54) (3.61) 4,810.413,905.92 249 121,372 528 5,592.52 2,641,734.01

27/02/11 5,463.35(337.59) (5.82) 4,533.653,687.51 255 121,536 549 5,012.71 2,512,870.93

28/02/11 5,203.08(260.27) (4.76) 4,317.893,514.51 252 121,467 528 4,894.19 2,413,072.93

Monthly Performance for one year (DSE Performance -

February 2011)

DSE Performance: March 2010 to February 2011

MonthDSE Turnover Ratio of

Turnover to

Market Cap.

Index

Value

Tk. in mn

Volume

Nos. mnDSI DGEN DSE 20

Mar-10 175,115.99 747.99 0.08 4,573.81 5,582.33 2,952.01

Apr-10 191,303.18 700.63 0.08 4,641.54 5,654.88 3,039.17

May-10 386,238.36 1,013.99 0.08 5,030.05 6,107.81 3,432.23

Jun-10 387,733.65 1,203.94 0.14 5,111.63 6,153.68 3,650.04

Jul-10 322,769.28 1,163.22 0.11 5,278.89 6,342.76 3,721.78

Aug-10 394,438.07 1,793.43 0.13 5,555.49 6,657.97 3,874.50

Sep-10 312,562.35 1,602.83 0.10 5,930.90 7,097.38 4,137.93

Oct-10 468,008.97 2,265.35 0.14 6,612.14 7,957.12 4,533.18

Nov-10 471,717.20 2,233.33 0.13 7,135.16 8,602.44 5,119.13

Dec-10 387,174.09 2,275.47 0.11 6,877.66 8,290.41 5,204.98

Jan-11 186,969.24 1,442.65 0.06 6,198.82 7,484.23 4,701.74

Feb-11 114,887.12 1,020.38 0.05 4,317.89 5,203.08 3,514.51



Sectoral Price Earnings Ratio - February 2011

Sectoral P/E - February 2011

SectorSectoral Price Earnings Ratio

Feb-11 Jan-11 Dec-09 Dec-08 Dec-07 Dec-06 Dec-05

Bank 14.13 21.75 16.46 16.33 25.99 16.24 18.24

Financial Institutions 31.50 43.35 32.45 25.26 15.13 7.88 33.83

Mutual Funds 9.15 12.54 29.06 20.37 20.29 6.13 6.55

Engineering 32.08 51.13 36.50 30.24 28.57 17.34 14.14

Food & Allied 18.65 25.46 17.29 16.93 23.28 18.69 9.13

Fuel & Power 14.91 21.16 17.71 15.83 35.95 18.87 22.32

Jute 26.30 42.72 27.23 12.15 7.98 6.74 12.55

Textile 30.08 46.66 32.93 13.85 12.14 12.01 10.08

Pharmaceuticals 25.07 32.83 27.64 30.96 21.05 11.76 10.84

Paper & Printing 67.29 109.15 27.59 9.36 6.23 6.62 4.69

Service & Real estate 23.17 38.68 45.65 22.66 8.82 12.62 8.16

Cement 20.08 30.36 56.90 10.26 12.61 18.53 16.13

IT 38.76 57.31 60.71 46.52 15.25 11.12 10.46

Tannery 14.06 19.08 15.39 16.43 15.38 8.00 10.28

Ceramic 57.89 107.15 39.97 47.80 29.85 14.88 17.06Insurance 33.87 55.04 31.39 21.81 15.59 10.24 20.87

Telecommunication 11.58 19.64 84.85

Travel and Leisure 47.82 74.64

Miscellaneous 14.47 19.68 28.85 34.43 14.43 11.05 7.83

Market P/E 17.79 26.66 25.65 18.42 23.58 14.51 13.85



Overview of Global Market

Name of the

CapitalMarkets

IndicesName

Indices Yearending2008

IndicesCurrent

Jun 2009

ListedCompanies

MarketCap

in US$ mn2008

Turnoverin US$

mn2008

PERatio

(2008)

Yield%

(2008)

% of GDP2008

SAARC Countries:

Colombo StockExchange

CSEMilanka

1631.34 2721.64 235 4285.90 1022.6 6.53* 4.72*13.25

Dhaka StockExchange

DSE GEN 2795.34 3010.26 276 15138.51 9687.67 18.42 2.4817.00

Karachi KSE 100 5865.01 7177.64 652 23500.00 350.00** - - 16.45

Bombay StockExchange

SENSEX 9647.31 14493.84 4921 647204.80 309178.7 13.77 1.7854.99

Regional:

Philipines PSEComposite

1872.85 2437.99 246 52030.6 17216.60 - -36.12

Bursa malaysia KLSEComposite

876.75 1075.24 976 189239.20 94693.50 - -101.35

Singapore STI 1761.56 2333.14 767 264974.40 261282.20

- -164.23

StockExchange of Thailand

SET 449.96 597.48 525 103128.20 116967.50

- -42.03

International:

Hongkong Hang Seng 14387.48 18378.73 1261 1328768.50

1629259.90 - -641.39



Tokyo TOPIX 859.24 929.76 2390 3115803.50

5586327.10 - -71.07

London FTSE 100 4434.17 4249.21 3096 1868153.00

6473611.60 - -67.39

Nasdaq Composite 1577.03 1835.00 2952 2396344.30

36445906.10 - -17.43

Deutsche

Borse

DAX 4810.20 4808.64 832 1110579.6

0

3880942.40 - -33.48

Source: World Federation of Exchanges, Individual Stock Exchange Website, www.econstats.com.

* figure shows for the month of January 2009. ** is not available in 2008

DSE automated trading system

Preamble TESA Functional Model

Hardware TESA's principal trading functions

Network (LAN / WAN) Markets

System Software Trading Sessions

Application Software Market Control

TESA Architecture Market Information

Solution Benefits Broker Support

PREAMBLE : Globally the developments in information & communicationtechnologies (ICT) have created a new instance in the securities market operations. Stock

Exchanges all over the world have realized the potentiality of ICT and inclined to the

electronic trading systems. It was understood by DSE that technology would ensuretransparency, timeliness and satisfaction in customer service. Considering those DSE

introduced Automated Trading System on 10th August 1998.In other words, the trading

floor moved right into the member's office premises where an investor started to place buy/sell orders.

http://www.dsebd.org/dse_automation.php#prem

http://www.dsebd.org/dse_automation.php#tesafunc


http://www.dsebd.org/dse_automation.php#hard

http://www.dsebd.org/dse_automation.php#tptf


http://www.dsebd.org/dse_automation.php#net

http://www.dsebd.org/dse_automation.php#mkt


http://www.dsebd.org/dse_automation.php#syssoft

http://www.dsebd.org/dse_automation.php#tradS

http://www.dsebd.org/dse_automation.php#app

http://www.dsebd.org/dse_automation.php#mcon

http://www.dsebd.org/dse_automation.php#tesa

http://www.dsebd.org/dse_automation.php#minfo


http://www.dsebd.org/dse_automation.php#solB

http://www.dsebd.org/dse_automation.php#bsup

http://www.dsebd.org/dse_automation.php#prem


http://www.dsebd.org/dse_automation.php#hard


http://www.dsebd.org/dse_automation.php#net


http://www.dsebd.org/dse_automation.php#syssoft

http://www.dsebd.org/dse_automation.php#tradS

http://www.dsebd.org/dse_automation.php#app

http://www.dsebd.org/dse_automation.php#mcon

http://www.dsebd.org/dse_automation.php#tesa


http://www.dsebd.org/dse_automation.php#solB

http://www.dsebd.org/dse_automation.php#bsup



Considering market growth the Automated Trading System was upgraded two times. The

recently Upgraded Trading System was started from 21st December, 2008.

HARDWARE: DSE Automated Trading System (HP NonStop S7806) is running onfault tolerant, high available, scalable and maintainable Mainframe Server. Previously

DSE established the TANDEM NonStop K204 System on September 1998 and onAugust 2005 it was replaced with highly scaleable HP NonStop S7802.

DSE upgraded the Trading System again on 21st December, 2008. The existing HP

NonStop S7806 Server is highly fault tolerant to the fact that no single component failure

will halt the system. Its constituent parts are hot swappable, and upward compatible;components can be added or removed while the system is running and any compatible

new upgraded will work with the system.

All disk drives are mirrored so, if any of the disk crashes the exact copy of the data isavailable at online. Moreover the connecting path for every disk whether it is primary or

mirror is also redundant. In every case, minimum two peripheral devices exist. All the

components are working active - active load balancing procedure. To ensure better power quality we have ensured high end UPS's with long durable backup capability, two instant backup generations and other electrical devices.

NETWORK (LAN / WAN): All the Member (238 members) Server Applications(MSA) are connected with NonStop HP S-Series Server through either DSE LAN or

WAN connectivity. Each member has one or more Trader Work Station (TWS). The

TWSs are being connected to the Trading Server via respective MSA through LAN and

WAN connection.

DSE outsourced MetroNet Ltd., DNS Ltd. , X-Net Ltd., Dhaka Com Ltd., Ranks ITT,Link-3, Royal Green Online Ltd. etc Network Service Providers (NSP under WANExpansion Project).

Now a days members can establish a main office or branch offices to their remotelocation and can trade smoothly by using different media ADSL, Optical fiber and Radio

Link from Dhaka and other important cities such as Gazipur, Narayanganj, Comilla,

Hobiganj, Chittagong, Sylhet, Khulna, Barisal, Rajshahi, Bogra at the same time.

Three DSE branch offices located at Chittagong, Sylhet and Khulna are connected via

BTTB's DDN link. We also used another connectivity for redundancy for the DDN link.

We have a plan to reach the DSE branches in same way.

DSE LAN/WAN Expansion DSE LAN/WAN Expansion

Within Dhaka City: Outside of Dhaka City:



In case of trade interruption due to serious hardware, software, network failure or

telecommunication disruption at the Brokerage houses, there is a provision to allow

traders to trade at DSE Contingency Trading floor.

SYSTEM SOFTWARE : The system software is HP Proprietary NonStop KERNELand includes the database as part of the operating system thereby eliminating the layer

typically found in most Database Management Systems (DBMS). The Database

functionalities are handled by NONSTOP SQL, which is simply a different operationalsession for the operating system. The proprietary nature of the system software arguably

enhances system security.

Operating system is HP's proprietary Nonstop Kernel

DBMS handled by NonStop SQL.The system software treats all its hardware resources as objects and is thus entirely

message driven. This then allows application software to be deployed using client / server

architecture providing shared data processing between the central server and the user workstation. The central trading system resides in the Stock Exchange premises, which is

running 24 hrs in a day & 365 days in a year.

APPLICATION SOFTWARE: The application, which runs in DSE for trading, is

called TESA (The Electronic Securities Architecture). TESA has two parts: MSA(Member's Server Application) & TWS (Trader workstation). MSA is the "Gateway"

between the traders and the Stock Exchange, which manages all the transactions and

database operations between the traders and the Trading Engine. TWS is the Front-endApplication closer to investors, where they can submit Buy/Sell orders for their desired

securities

TESA (The Electronics Securities Architecture) is the Trading software (Based on HP proprietary O/S & DBMS)

It has developed in view of Distributed Database system

In the client site it is being using SQL as local DatabaseTrading Software is MSA & TWS

In STSD (Signal trader Single Database) system both MSA & TWS are running on a

Windows 2k Professional /XP Professional workstation and for MTSD (Multiple trader



Single Database) MSA install in a Windows 2k Server & the TWSs are in different

Windows 2k Professional /XP Professional workstation-using members in house LAN

TESA ARCHITECTURE: TESA software is built for the global securities markets. Ituses fault tolerant computers, intelligent workstations and client / server design

techniques. This provides co-operative processing, high message integrity, continuousoperation and fully automatic recovery. This co-operative mechanism enables very high

speed processing which is essential for today's electronic markets.

TESA's Application Programmatic Interface (API) is the gateway to the TESA system

from the outside world. All external devices connect through the API. The API provides

the translation between external devices and internal processes. This means that a new

process does not need to be written to support each new device, only the API needs to bemodified.

SOLUTION BENEFITS: The TESA application suite derives significant advantages

from being implemented on the HP NonStop platform. The HP NonStop customers have benefited from these advantages.

Fault Tolerance: One of the most important automation requirements for any stock

exchange system is continuous system availability. With most systems Fault Tolerance is

created at the application level. Fault Tolerance is a fundamental design feature of the HP NonStop architecture.

Data Integrity: Data integrity is an integral feature of HP architecture. TESA employs

standard HP tools to achieve exceptional data integrity.

Scalability: The ability of an exchange to accommodate extraordinary increases intransaction volumes without loss of its Capital investment in automation is veryimportant. The HP NonStop Server is massively scalable due to Parallel processors.

TESA FUNCTIONAL MODEL : An overview of the TESA Functional Model

Client / Server: TESA's Client / Server architecture enables an efficient allocation of

computing resources and provides easily modified user-friendly interfaces. TESAworkstations operate under Windows 2K/ XP professional and can function either as

servers on a broker's network or as workstation. These are used to perform trading and

settlement activity by the brokers.

PRINCIPAL FUNCTIONS OF TESA :

Market Information: Supplying all market information needed to formulate the buy and

sell decisions.

Order Management: Accept, validate and store orders and quotes from broker workstations and / or systems.



Order Execution: Automatically executes orders when buy and sell prices match.

Trade Reporting: Trade execution reports are provided to each trade participant, to the

settlement system and / or the depository and to the market.

Index Calculation: Calculates and publishes market indices (DSE General Index &Weighted Average Index.)

Market Access: Provide exchange members with efficient affordable GUI-based tools

for accessing the market.

MARKETS: Four types of market at DSE

Public Market: In this market instruments are traded in normal volume

Spot Market: Instruments are traded in normal volumes under corporate action if any

Odd lot Market: Odd lots of all Instruments are trade in this market

Block Market: Instruments are traded in bulk volume

TRADING SESSIONS : TESA conducts trading in-5-phases.

Enquiry: In this session Brokers can logon to the system. No order will be submitted in

this session. No trade will be executed. Only previous orders can be withdrew in this

session

Opening: The Opening is a pure, single-price auction. All buy and all sell orders arecompared and calculate the open-adjust price. No trades will be executed in this session

Continuous Trading: During this phase, participants enter orders and immediate

execution or for inclusion in the book. Automatic matching and execution takes place

based on best price/ first in, first out trading rulesClosing: Closing prices are calculated and disseminated to market participants

Enquiry: Market will be closed in this session & other facilities like the previous enquirysession.

MARKET CONTROL: The Market Control Workstation allows the exchange

administrative staff to control the operation of the market, e.g.

Session Control: Opening and closing the market via interactive control or by presettimers.

Validation Parameters: Setting and viewing parameters that control the trading engine

validation e.g. tick size, Circuit Breaker, Circuit Filter, Market lot, Price protectionPercentage.

Messaging: Allows the dissemination of company announcement data and generalmarket administrative massages.

MARKET INFORMATION : Market Information is a real-time market data system. Itcollects, manages, generates and stores information relating to trade instruments and

issuing companies. Market Information is responsible for,

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Collecting Real-Time Market Information: Bids, offers, last sale (i.e. most recent trade

price and volume), book and other data are gathered via the Trading engine. It supports

TESA's automated and manual trading modules and can process the trades of externaland off-market systems.

Collecting company Information: All information supplied by the listed companies aremaintained in the TESA database.

Generating Market Statistics: TESA generates market indices on a real time basis. Itgenerates other statistical information such as Price.

BROKER SUPPORT

Research and Enquiry: this module provides brokers access to the local Broker Support

and TESA databases for enquiries and research purposes.

The multi-windows environment allows users to simultaneously view orders, market and

trades. Broker Support offers Stock Exchange members two configurations; standaloneand multi-user. Both configurations maintain a database consisting of information

generated by the TESA Server and the local system.

Algorithm of DSE indices:

Index Calculation Algorithm (according to IOSCO Index Methodology):

Yesterday's Closing Index X Current M.Cap

Current Index = --------------------------------------------------------------

Opening M.Cap

Yesterday's Closing Index X Closing M.CapClosing Index = --------------------------------------------------------------

Opening M.Cap

Current M.Cap = ∑ ( LTP X Total no. of indexed shares )

Closing M.Cap = ∑ ( CP X Total no. of indexed shares )



There are three indices in the DSE as follows :

Sl.No Index Name Base Index Remarks

1 DSI (all shares) 350 (as on 01-11-1993)

2DGEN

(A, B, G & N)817.63704 (as on 24-11-2001)

SEC directive regarding

index was on 17-11-2001

3 DS20 1000 (as on 01-01-2001)

Abbreviations and Acronyms

M.Cap - Market Capitalization

DSE - Dhaka Stock Exchange

IOSCO - International Organization of Securities Exchange Commissions (IOSCO)LTP - Last Traded PriceCP - Closing Price

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