Do Broker Orders to Stock Exchanges have Client Code with each order?

#1
Hi All

I have a query. Does each broker order contain the Client ID for that order? Or does the broker simply fire orders & later match filled orders with clients?

Can the broker switch the client orders if he so decides to cheat a client? Question here is the capability, not the laws or intent. If orders to stock exchanges do not contain client codes, then this is possible.

Can some broker please comment?

Rgds.
Sanjay.
 
#2
Hi All

I have a query. Does each broker order contain the Client ID for that order? Or does the broker simply fire orders & later match filled orders with clients?

Can the broker switch the client orders if he so decides to cheat a client? Question here is the capability, not the laws or intent. If orders to stock exchanges do not contain client codes, then this is possible.

Can some broker please comment?

Rgds.
Sanjay.
Each order has to have client code in it. Broker cannot fire orders without client code and then mix and match later. In fact when there is an error in entering the client code, the broker has to rectiy it in post close session of 15 min after market closes. Here also he is allowed very few corrections as very small % of his total trades and above that number, he is fined heavily as high as Rs 5000-50000 per client code change and he comes on the scanner of Exchanges and SEBI and inspection is ordered...so for genuine client codes due to typing mistakes of dealers broker has to pay heavy price. In NSE min fine a broker is subjected to pay is Rs 5000.

I am not a broker but some of my close friends are NSE and BSE brokers and they are scared of these penalties.

Smart_trade
 
#3
Paying 5000 or 50000 fine on a transaction where broker may make lakhs, is laughable.

Technically, if broker is required to provide client code there cannot be wrong client codes because these are sent by automated systems. If a client code is wrong its wrong always, it cannot be wrong on a given day or given transaction.

In case it is wrong. Is the client intimated for feedback or do the exchange and broker fix it between them?

I am looking for more information on this. Anyone who has seen this kind of correction, please come into the thread.

Tks.

Sent from my ONEPLUS A5000 using Tapatalk
 
#4
Paying 5000 or 50000 fine on a transaction where broker may make lakhs, is laughable.

Technically, if broker is required to provide client code there cannot be wrong client codes because these are sent by automated systems. If a client code is wrong its wrong always, it cannot be wrong on a given day or given transaction.

In case it is wrong. Is the client intimated for feedback or do the exchange and broker fix it between them?

I am looking for more information on this. Anyone who has seen this kind of correction, please come into the thread.

Tks.

Sent from my ONEPLUS A5000 using Tapatalk
I have a CTCL dealer's terminal from my broker and I have done these corrections myself in Post Close session on my own trading terminal.The wrong client code is possible due to wrong typing by dealer.In my case I enter trades only for my family accounts . I have fed instruction of " keep the last client code " in my terminal to avoid entering client code every time because most of the times I trade on a particular client code....but sometimes in entering trade in other family account the Client code of earlier trade remains and the order goes with wrong client code requiring client code modification.

The exchanges are very strict in client code modification as this is a sure way of transfering profit to some clients underhand.....but it has very strict rules and monitoring .

Smart_trade
 
Last edited:
#6
@Smart_trade
Code:
 I have a CTCL dealer's terminal from my broker
Hey, great that u said that. What all is required for CTCL connectivity? & What are pros & cons?



Sent from my ONEPLUS A5000 using Tapatalk
You need a valid certification from NCFM for the segments you are going to transact in. Broker gives a CTCL terminal if you have a good volume. It has CTCL connectivity cost ( Rs 500-2000 per month depending on the broker and your volume with him.) Earlier it required leased line and modems and routers or V-sat ( cost Rs 5000-10000 pm) but now it is available on internet .

Broker will give CTCL terminal and map certain client codes if he is sure that you have enough experience of handling the terminal. He will map your family accounts under you. For strangers accounts, he will insist that you become his Authorised Person.

Advantage is that you can enter trades for multiple accounts mapped under you without logging into each individual client account.

Authorised Persons are subjected to broker,Exchanges and SEBI inspection.

Smart_trade
 
#7
CTCL codes mean your orders go right to the exchange, right? how does broker manage risk, in that case? or does he set trading limits with exchange every time u pay him?

Sent from my ONEPLUS A5000 using Tapatalk
 
#8
CTCL codes mean your orders go right to the exchange, right? how does broker manage risk, in that case? or does he set trading limits with exchange every time u pay him?

Sent from my ONEPLUS A5000 using Tapatalk
Limits are set by brokers risk management team. You can get the limit increased by paying additional margins and telephoning the RMS. Broker can monitor all CTCL terminal activities from his Head Office terminal.

Smart_trade
 

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