BSE Launches Mobile Trading; Orders Can Be Sent To The Exchange via Wireless Protocols

Written By Sam on 28 September 2010
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After online trading, offering mobile trading seemed to be a logical way forward for Bombay Stock Exchange (BSE). And the Stock Exchange has just done that by introducing mobile trading in India. Explaining its latest move, BSE admitted that a “new breed of clients has arisen, equipped to trade at the convenience of their time and place — using their mobile handsets.

Seeking to increase the number of retail investors in the country, BSE emphasized on the fact that mobile trading would offer faster trading, while effectively eliminating the need to wait to get to a trading terminal or a PC to start trading. The launch of the new service is understood to have received a positive response from members of the exchange who registered their participation in the program. We hear, more members are hoping to get on board to avail of the service.

So, how does it work? BSE maintained that mobile trading was essentially an extension of internet-based trading. Similar to a client logging on to the broker’s trade portal on an internet-enabled PC, the mobile service enables a user to do the same with a mobile phone. BSE explained, the broker will have full control of the risk parameters since orders submitted by client on his mobile will be sent via the broker’s servers to the exchange. Orders are sent to the exchange via wireless protocols, utilizing GPRS or other data services, via mobile phones or other wireless devices.

We may recall, Securities and Exchange Board of India (SEBI) noted in August that brokers registered to provide internet trading will be able to also provide securities trading using mobile technology. BSE informed that broker members can use third party mobile trading solutions by vendors empanelled by BSE, or go for in-house developed mobile trading solutions approved by BSE. With mobile trading being validated thus, what is left to be seen is how mobile operators jump in to take advantage of the mobile trading trend that is bound to find a great number of takers.

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