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![Modules of NOTS
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Uploaded byBikalpa Bhurtel
NEPSE Online Trading System (NOTS)
Mr. Bikalpa Bhurtel gave a presentation on the NEPSE Online Trading System (NOTS) which allows for online share trading in Nepal. The presentation covered introductions to securities and NOTS, basic trading terms, the overall share transaction process in Nepal, and how online trading works. NOTS facilitates automated online trading through a broker's trading management system and virtual private network connected to NEPSE. It allows buyers and sellers to place orders that are matched and processed, with partially filled orders allowed. Open orders can be edited or cancelled at the end of the trading day when all unmatched orders are cancelled.
NEPSE Online Trading System (NOTS)
- 1. NEPSE Online Trading System (NOTS) BikalpaBhurtel Presentation on:
- 2. DISCLAIMER Intended to beused and must be used for informational purposes only. Mr. Bikalpa is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information presented here is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information…
- 3. Topics to beDiscussed 👉 Introduction on Securities 👉 Introduction on NOTS 👉 Basic Terms used in Trading 👉 Overall Process of Share Transaction in Nepal 👉 How does Online Trading work??
- 4. Securities are tradablefinancial assets. Introduction on Securities Simply, it is any proof of ownership or debt that has been assigned a value and may be sold.
- 5. Also known asInternet Based Fully Automated Online Trading System. Introduction on NOTS Online trading is simply buying and selling assets through a brokerage's internet-based proprietary trading platforms.
- 6. Modules of NOTS ;+u7gtyf k|of]ustf{ Joj:yfkg st{Jo tyf clwsf/ Joj:yfkg ;"lrs/0f Joj:yfkg w/f}l6 Joj:yfkg a|f]s/ Joj:yfkg ahf/ lgdf{tf ;"rsf+s Joj:yfkg d"No ;DjGwL hfgsf/L k|jfx hf]lvd Joj:yfkg k|0ffnL ;'k/Lj]If0f k|0ffnL
- 7. a|f]s/ Aofs clkm;Joj:yfkg cfb]z dfu{ Joj:yfkg ;b:o P8ldg 6ld{gn Trader's Work Station- Investor Trader's Work Station- Broker lgoGq0f js{ :6]zg Matching Engine Exchange Messaging System Member Portal Management Information System and Report
- 8. Basic Terms usedin Trading 👉 SEBON Securities Board of Nepal 👉 NEPSE Nepal Stock Exchange 👉 CDSC Central Depositary Service Clearing Ltd. 👉 Broker
- 9. 👉 De-mat Account 👉ASBA Account Supported by Blocked Amount 👉 DP Depositary Participant 👉 DNA Direct NOTS Access
- 10. Overall Process ofShare Transaction in Nepal NEPSE facilitates trading in the following instruments: 1. Stocks- Common Stocks &Preference Stocks 2. Bonds- Debentures, Government Bonds & Power Bonds 3. Mutual Funds
- 11. Centralized Application forASBA Based Issuance (C-ASBA) Investor Open De-mat account and apply for CRN Open Mero Share account Apply for IPO Share gets Credited to De-mat Account
- 12. Buy Sell Investor Open De-mat account Placeorder to buy shares through broker Transaction get processed Share gets Credited to De-mat Account Investor De-mat Accounts holds shares Place order to sell shares through broker Transaction get processed Share gets Debited from De-mat Account Traditional (Before NOTS)
- 13. Buy Sell Investor Open De-mat account Placeorder to buy shares through TMS Transaction get processed Share gets Credited to De- mat Account Investor De-mat Accounts holds shares Place order to sell shares using TMS Transaction get processed Share gets Debited from De-mat Account NOTS (NEPSE Online Trading System)
- 14. Online Trading System Howdoes it work ??
- 15. TMS NOTSVPN Trading andOrder Management Process Seller Buyer Broker Trading Management System Virtual Private Network NEPSE Online Trading System
- 16. TMS Lot Size: Multiple of boardlot quantity Price: Between valid low price & valid high price and multiple of tick size Order Management Buyer / Seller
- 17. NOTS Order Matching –Buy Order Completely Matched Buy Order Partially Matched Buy Order Buy Order 100 Shares of PYC* Rs.115 Counter Sell Order 100 Shares of PYC* Rs.115 Buy Order 100 Shares of PYC* Rs.115 Counter Sell Order 50 Shares of PYC* Rs.115
- 18. NOTS Order Matching –Sell Order Completely Matched Sell Order Partially Matched Sell Order Sell Order 100 Shares of PYC* Rs.115 Counter Buy Order 100 Shares of PYC* Rs.115 Sell Order 100 Shares of PYC* Rs.115 Counter Buy Order 50 Shares of PYC* Rs.115
- 19. Editing / CancellingOrder Placed Only open order and partially traded order can be cancelled Order Cancelled at the end of the day All open and Partially Traded orders (buy & sell) will be automatically cancelled at the end of day. All unmatched orders will be cancelled at market close.
- 20. Any questions? You canfind me at: bikalpabhurtel@gmail.com +977-9xxxxxxxxx www.facebook.com/beecallpa www.instagram.com/me_bikalpa
- 21.
Editor's Notes
- #6 Traditionally, investors and traders have to call their brokerage firms to make a trade for them. If John wanted to purchase 50 shares of Intel, he would call his broker with a buy order request. The broker would let John know the market price and confirm the purchase order. If the investor is making a limit order, the broker has to confirm the limit price, how long to keep the order open for, what account to purchase the shares in (if John has multiple investment accounts), etc. The investment representative must also confirm the commission costs for making the trade. When all has been established, the broker would place the trade in the system which is linked to trading floors and exchanges, such as the New York Stock Exchange (NYSE) or the NASDAQ. The client would receive a trade confirmation by mail and a monthly or quarterly statement of account showing a list of his investments. If John wanted to transfer some cash from his trading account to his checking account, and vice versa, he would also have to call in to make that transaction request. Today, with the advent of the internet in the digital era, more and more investors are using online trading platforms offered by their brokers for DIY (do-it-yourself) investing. The online trading platforms serve as a hub with multiple tools for the investor or trader. The investor can place buy and sell orders; place market, limit, stop, stop-loss, and stop-limit orders; check the status of an order; view real-time stock quotes; read news on companies; view the list of securities currently held through the dashboard; etc. An investor can also access his or her investment statements, confirmation statements, and investment tax forms using the online system. Most discount brokerages that are affiliated with banks also provide added convenience for their digital clients by linking their bank accounts to their investment accounts. This way, an investor can easily initiate a transfer between accounts held under the same financial institution. Another benefit of online trading is the improvement in the speed of which transactions can be executed and settled, because there is no need for paper-based documents to be copied, filed and entered into an electronic format. When an investor enters an order online, the order is placed in a database which checks for the best price by searching all the market exchanges that trade the stock in the investor's preferred currency. The exchange with the best price matches the buyer with a seller and sends the confirmation to both the buyer’s broker and the seller’s broker. All this is done within seconds of placing a trade, compared to making a phone call which has to go through several confirmation steps before the rep can enter the order. It is up to an investor or trader to do his due diligence on a broker before opening an online trading account with the company. Before an account is opened, the client will be asked to fill out a questionnaire about his or her investment and financial history to determine what type of trading account is suitable for the client. If the investor has little knowledge about the different types of securities and trading strategies in the financial world, a simple cash account will be opened for him for doing simple buy and sell orders on stocks, mutual funds, bonds, and ETFs. On the other hand, a sophisticated trader who would like to implement various trading techniques will be given a margin account in which he can buy, short, and write securities such as stocks, options, futures, and currencies.
- #10 DNA login enables connection between Trade Work Station and the Exchange.
- #11 Bond power is a separate legal form that authorizes the transfer of ownership of a registered bond from one party to another, without endorsing the bond certificate. The bond power is mostly a substitute for the assignment on the back of the bond itself. It formally appoints an attorney-in-fact to transfer the ownership of the bonds Please Note: we are only talking about trading on secondary market.
- #12 C-ASBA Registration Number. Customer Registration Number. For IPO of certain Company, EPF holders cannot apply online
- #14 Delivery Instruction Slip Book (DIS)