Скачать с ютуб Nism Series 8 l Chapter 6 Trading Mechanism Part-1 l Equity Derivatives Certification Exam в хорошем качестве

Nism Series 8 l Chapter 6 Trading Mechanism Part-1 l Equity Derivatives Certification Exam

Chapter 6: Trading Mechanism • Trading Mechanism for futures and options • Entities involved in the trading of futures and options • Different types of orders and order matching rule • Selection criteria of stocks and index for futures and option trading • Adjustment for Corporate ----------------------------------------------------------------------------------------------------------------------- In this chapter we shall take a brief look at the trading mechanism of futures and options on exchanges, including various types of orders. However, the best way to develop an understanding of the trading mechanism is to watch the screen and observe trading. As stated earlier, futures and options are standardized contracts and like shares, they are traded on exchanges. Markets around the world can be classified into two main types based on the methods of booking a trade namely an “open outcry” market and the “electronic” market. Open outcry is the way of communication between professionals on an exchange, which involves shouting, or using hand signals to transfer information about buy and sell orders. In an open outcry market, the trading takes place in a large hall known as “pit” where members are present and contracts are traded through continuous bids and offers. Thus, such a market brings together the buyers and sellers (through their brokers) on a platform for trading. In case of electronic trading, there are screen-based broker dealing terminals, instead of the trading pit. Futures and options trading in India is electronic in nature, with the bids and offers, and the acceptance being displayed on the terminal continuously. All the derivatives exchanges in India provide a fully automated screen-based trading platform for index futures, index options, stock futures and stock options. These trading systems support an order driven market and simultaneously provide complete transparency of trading operations. Derivative trading is similar to that of trading of equities in the cash market segment. All these exchanges have developed software for the F&O market to facilitate efficient and transparent trading in futures and options instruments. ---------------------------------------------------------------------------------------------------------------------- Trading cum Clearing Member: This is a Clearing Member (CM) who is also a Trading Member (TM) of the exchange. Such CMs may clear and settle their own proprietary trades, their clients' trades as well as trades of other Trading Members and Custodial Participants. Professional Clearing Member: A Professional clearing member clears the trades of his associate Trading Member and institutional clients. A PCM is not a Trading Member of the exchange. Typically banks or custodians become a PCM and clear and settle for Trading Members as well as for Custodial Participants. Self Clearing Member (SCM): A Self Clearing Member is also a Trading Member on the exchange. Such CMs may clear and settle only their own proprietary trades and their clients' trades but cannot clear and settle trades of other Trading Members. Participants: A participant is a client of a trading member. Clients may trade through various trading members but settle through a single clearing member. Authorised Persons (APs): SEBI had earlier allowed spread of sub-brokership as well as Authorised Person’s network to expand the brokers’ network. However, SEBI Board in its meeting held on June 21, 2018 decided that sub-brokers as an intermediary shall cease to exist with effect from April 01, 2019. All existing sub-brokers would migrate to become Authorised Persons (APs) or Trading Members if the sub-brokers meet the eligibility criteria prescribed under Stock Exchange bye-laws and SEBI Regulations and by complying with these Regulations. ------------------------------------------------------------------------------------------------------------------- Pinterest:   / sarkari-job   Twitter:   / kenpoint1   Linkedin:   / kenpoint   telegram: https://web.telegram.im/@sarkarijob_k... Instagram: https://www.instagram.com/sarkarijob_...