An emerging option

Few stock exchanges in the world have witnessed the massive changes and developments being seen in the Bombay Stock Exchange (BSE). Consider the BSE Online Trading System (BOLT) and Trader Work Station (TWS) network. The BOLT network currently covers 227 centers, having 672 very small aperture terminals (VSATs) and 949 TWSs. Of these, 595 VSATs and 807 TWSs are installed outside Mumbai. By the end of 2000, BSE expected to have around 10000 TWSs on its network. Today, the number of TWSs on its network has gone up significantly than ever before.

Network security is a key factor in oil commodities trading. The BOLT network utilizes a combination of leased lines and proprietary VSAT, which ensures that information communicated between the brokers and the BSE system is secured at all times. The brokers are provided TWSs that are connected to the trading and settlement system of the BSE through VSAT. oil commodities trading had fewer players in earlier times, but due to the spiraling price of oil in the world market, more people now consider it worth to invest in oil commodities.

The expansion plans of BOLT are rather amazing. By the end of the decade, BSE plans to increase the present 5000 TWSs to 10000 TWSs. This will connect most of the locations in India with the BSE, which will enable an investor in any part of India to access the BOLT system during the trading time. The capacity of the BOLT hardware to process transactions has been enhanced from 1,50,000 trades per day to 5,00,000 trades per day (in 6 hours, i.e., 9.30 AM to 3.30 PM) and the capacity is being further increased to 1,000,000 trades per day.

Offline trading is yet to find roots in the Indian stock market even though it is likely in the future. Some of the prominent stock exchanges in the advanced countries allow enough opportunities to place quotes and even make payments through offline trading platforms.