Details

Case

Educator Copy

NOTE ON TRADING SYSTEMS DESIGN

MAHOON Z


INDUSTRY : FINANCIAL SERVICES

AREA : Management Information Systems

ORGANIZATION : -

LENGTH : 12

LUMS No : 18-263-94-2

PUBLICATION YEAR : 1994

DESCRIPTION

KEYWORDS:


DESCRIPTION:

Bidding systems can be either manual or automated. In a manual system, the trading parties must meet on a trading floor, designed for this purpose. Trading takes place either with the out-cry system or by a silent system using a series of hand signals. Various floor set-ups can be used for each system. The most popular are the table setup and the zoning system. There are various degrees to which a trading system may be automated. The fully automated system would involve the on-line, real-time hooking up of all end users to the central computer facility of the stock exchange. Bids can be entered into the system by the end-users from terminals in their offices and be accepted by counterparts through similar terminals in their offices. Thus, the need for a physical trading floor is eliminated.


LEARNING OBJECTIVES:

N/A


SUBJECTS COVERED:

Management Information Systems