Technical Note
NOTE ON TRADING SYSTEMS DESIGN
INDUSTRY :FINANCIAL SERVICES
AREA :MANAGEMENT INFORMATION SYSTEMS
ORGANIZATION :-
LENGTH :12
LUMS No :18-263-94-2
PUBLICATION YEAR : 1994
ABSTRACT:
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.