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Premier stock exchange BSE Ltd today said it will launch equity trading on Bolt Plus, the country’s fastest trading platform, from April 7.
“We are launching equity cash segment for trading on our Bolt Plus platform on April 7 this year. We have already launched currency futures and options in November 2013, interest rates futures in January and equity derivatives on February 7 this year on Bolt Plus Live platform,” Bombay Stock Exchange CEO and MD Ashish Chauhan told PTI here.
BSE upgraded its technology platform in November 2013 to BOLT+. The BSE trading system (Bolt Plus) is based on T7, the global trading architecture of Deutsche Bourse AG.
One of the key features of the system is its response time of approximately 200 micro seconds, making it the fastest trading platform in the country today. BSE new technology is open source and low cost.
“The technology currently offers 200 micro seconds as the order execution speed and can handle 5 lakh orders per second. Going forward BSE intends to increase the speed further to 20 microseconds by 2016 with an order taking capacity of 50 lakh orders per second,” a source familiar with the new technology platform said.
The new technology has allowed BSE to achieve highest global standards for speed, reliability and order handling capacity. BSE matching engine is one of the fastest platforms globally in terms of throughput, latency and turnaround time, Chauhan said.
By aligning BSE, Eurex Exchange and ISE markets on a common trading infrastructure, IT costs for shared customers will reduce significantly, he said.
Since 1994 to 2014, NSE had a technology edge over BSE. For the first time in the stock market history, BSE is capable of offering a trading speed which is several times faster than rival exchange and can be scaled up to 100 times in three years from now, say analysts.
Many stockbrokers attribute the recent success in the BSE’s currency derivative platform to its new trading technology, which gives a round-trip latency — time between order entry and confirmation — of less than 200 microseconds.
In the last few months, BSE has gained a considerable market share in its derivatives segment and has been ranked fourth largest exchange in derivatives trading across the world by the World Federation of Exchanges.
The exchange is hopeful that the traders, who left BSE in 1994 in search of faster trading platform, would now return.
BSE is the fifth largest exchange in the world in terms of number of trades in equity shares, having largest number of 5,305 listed companies in the world.
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