To list in the second quarter of 2013
The Bombay Stock Exchange is in the process of enhancing its IT capabilities to handle one lakh orders a second.
“We are continuously striving to increase our scalability. In a six-hour day we get around eight crore orders. On many occasions, we get around 10,000 orders a second, which are restricted in a sense, because of the capacities,” said Ashish Kumar Chauhan, Managing Director and Chief Executive Officer, BSE.
Once upgraded, it will be among the top performing computer systems of any type in the world, he said.
The BSE has revamped its IT systems relating to trading, clearing, settlement, back office, collaterals and risk over the last three years.
On latency, he said three years back, it was 300 milliseconds on BSE. Today, it is below 10 milliseconds. However, the world has moved to 100 micro-seconds. (Latency is the time taken for stock prices to be disseminated from the exchanges’ IT network to the broker terminals. It is measured in seconds. A thousand milliseconds make one second and a million microseconds make a second.)
Chauhan said BSE ranks among the top 25 per cent of exchanges globally in latency. In terms of orders handled it would be among the top three-four and in the number of trades, in the top seven.
The BSE plans to list in the second quarter of 2013.
Everything else being positive, BSE should be able to move in that direction, he said.
In the last three years, BSE has been putting out results every quarter. This is in preparation of its listing. “We have started working on the listing process now that the regulations allow listing of exchanges. We have started talking to investment bankers and think we should be able to come out with the IPO in the second quarter of 2013,” he said.
A member of BSE Brokers Forum said that the size of IPO was yet to be decided, though the public shareholding norms stipulate a minimum of 25 per cent public share holding.
It is going to be an offer for sale and brokers are trying to obtain maximum valuation, the member said.
BSE facilitated an offer for sale to shareholders to achieve demutualisation on April 12, 2007. A share of BSE was sold at Rs 5,200 each.
In March, 2009, BSE issued bonus shares in the ratio of 12:1 (12 new shares for every share of Rs 1 face value held).
The bourse has also been paying dividend regularly.