| | BSE launches Scheme for creating Liquidity in Illiquid Scrips
** Major step aimed at assisting the small investors ** With a view to address the issue of illiquidity in scrips traded in B2 group, the Exchange has devised a scheme for creating liquidity in initially select 100 scrips in B2 group. The Quote system would be re-introduced on the BOLT system only for these scrips. The scheme would be implemented w.e.f. April 19, 2004 on the BOLT system and would be operational for an initial period of three months.
Currently, under the Quote system, two way Quotes are present where, both the buy price and the sell price is indicated. Members can enter both Quotes and Orders at the same time, which will be present simultaneously in the system. Quote can be entered only of the scrips that are selected for the Quote system. The traders can enter Quote for all the client ID’s. However, a trader can place only one Quote per scrip and the next Quote can be only entered after the execution or deletion of the previous Quote.
All Quotes has a Buy side and a Sell side. When one side of a Quote gets exhausted the other side gets automatically killed. Traders can Enter, Modify and Delete Quotes during the continuous session. Quotes cannot be entered in the post closing session. The pending Quotes are returned in the end of the trading session.
The salient features of the scheme are given below: - Eligible Scrips: The scheme would be initially available in 100 scrips identified in B2 group. A list of these scrips is enclosed as Annexure- A. Matching: The Orders and Quotes would get matched first on the price and then on time priority, as per the existing Order-to-Order matching system. However, the Quote would have priority in execution only if an Order and the relevant side of the Quote are at the same time Exclusivity: Both Orders and Quotes would co-exist. Order-to-Order matching would be possible and Quote would be matched with only Orders. Quote Spread Size between Bid/Offer Price: The spread of the Quotes i.e. the difference between the sell / offer and the buy / bid Quote would be maximum 10 times of the tick size applicable for the scrip. The Total Buy Quantity and the revealed Buy Quantity as well as the Total Sell Quantity and the Revealed Sell Quantity has to be in multiple of market lot. The revealed quantity has to be atleast 10% of the total quantity.
For example, if tick size of a scrip is 1 paise then the maximum spread size would be 10 paise. If tick size of a scrip is 5 paise then the maximum spread size would be 50 paise. The scrips selected under this scheme will have suffix ‘Q’ to the existing scrip Ids of the scrip. Admin Control in Quotes: The member can set rights for the traders under him through the TWS No 0 designated as Admin Terminal. The member can allow or disallow TWSs operating under his membership for this scheme. Also, the total buy/sell quantity for the trader can be set from the admin terminal.
The members can download the list containing these revised scrip IDs in a text file from DLOAD under "Scheme of liquidity ". The list in an excel file can also be downloaded from BSE’s website www.bseindia.com in "What’s New" and "Downloads" sections.
In case of any queries or clarifications required, the members may approach to their respective Account Managers at the Exchange. For technical details please refer to the Notice No. 20040310-21 dated March 10, 2004 and its Annexure.
Kalyan S. Bose
Head - Corporate Communications
# 2272 2938 (Direct) 2272 1233 Extn. 8740 | |
