What is NSE's exact Configuration?

#1
Hi Seniors,

I have a query, i hope you would spare some valuable time of yours helping me out.

I want to know the exact configuration of NSE.

What is it, i mean is it a just a company providing the IT support system for the trading enviornment and the market is run by the approved market makers who takes orders from our brokers and executes them.

or

is the NSE is the Market Maker firm itself with having floor brokers who place orders with it.

or

is NSE a complete IT management firm for trading and provides a purely computer based ask bid trading system where no physical market maker is involved. and the as and bid are entered into the mainframe system by our broker as per our ask and bid.

or

any other case


Plz. help me, thank n best Regards
Amit
 

prasadam

Well-Known Member
#2
Apart from the one high lighted, there are other functions like providing trade guarantee etc.,


cheers.

Hi Seniors,

I have a query, i hope you would spare some valuable time of yours helping me out.

I want to know the exact configuration of NSE.

What is it, i mean is it a just a company providing the IT support system for the trading enviornment and the market is run by the approved market makers who takes orders from our brokers and executes them.

or

is the NSE is the Market Maker firm itself with having floor brokers who place orders with it.

or

is NSE a complete IT management firm for trading and provides a purely computer based ask bid trading system where no physical market maker is involved. and the as and bid are entered into the mainframe system by our broker as per our ask and bid.

or

any other case


Plz. help me, thank n best Regards
Amit
 
#3
providing trade guarantee etc.,

cheers.
Dear sir Prasadam

thank you for clearing the clouds....... i have few more query which have popped up from the answer itself...... if NSE is a purely IT Managed system with no money maker then how does shorting happens........ coz if there is nobody whose shares i could sell on some guarantee then how could i sell the shares without having them coz anyway shares is a fixed no. entity and for sure, at any time, they could not be more than the quantity floated by the owner company......

Also plz. explain your quoted term (providing trade guarantee)...... (may be this is the itself the answer for the above question)..... plz. explain a bit....

i am sorry for too much questioning..... but i have this query stucked up in my mind so i want to clear it with you........

Thank you so much

Best Regards
Amit

PS: Waiting for your response
 

vasa1

Active Member
#8
Hi,

plz tell me what is it.....
Stock lending and borrowing mechanism. Institutional players are allowed to borrow shares for the purpose of short-selling and pay interest to the lenders of such shares. The stock exchanges have a window through which this is done.

Since I'm a chotta guy, I haven't bothered to learn more on this :p but I'm sure you can Google for more.
 
#9
thanks dude, this input is really valualble....i thank you.... newys i searched a lot and finally landed at nseindia.com itslef and got all the asnwers......

about your chotta guy comment, i would say that we all private traders are small as compared to institutional players but even then we should be bothered about the market configuration coz it helps to understand the cause of movements(usually unusual) of the market..... this is my feeling and i admire your knowledge and belief so if you dont agrre then plz. pass over this pargraph.....

following are the links for all the study material.... i am posting it for all those who have been stuck up in the same queries, which i was stuck up in....


http://www.nseindia.com/content/press/prs_publications.htm
http://www.nseindia.com/content/ncfm/ncfm_curriculum.htm


thanks for the replies guys...... u all rocks.....

Best Regards
Amit
 

vasa1

Active Member
#10
....we should be bothered about the market configuration coz it helps to understand the cause of movements(usually unusual) of the market..... this is my feeling and i admire your knowledge and belief so if you dont agrre then plz. pass over this pargraph.....
...
Please don't think I'm making fun of your comment (in bold above), but establishing cause and effect (kriyaa, pratikriyaa) is very difficult given the multitude of players, factors that influence them, and their intentions.

In no way am I saying that time spent knowing the nuts and bolts of how the system works from a technical point of view is time wasted. It's just that once I understood what SLBM was and that, in my opinion, it doesn't currently affect me, I pushed it to be back of my mind :)
 

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