Stock Exchange/ Screen Based Trading

Stock exchange is a marketplace where securities such as stocks, bonds, and derivatives are bought and sold. It provides a platform for investors to trade in these securities with each other. Screen-based trading, also known as electronic trading, refers to the buying and selling of securities through a computerized platform.

In the case of treasury markets, the primary stock exchange in India is the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). These exchanges provide a platform for investors to trade in various securities such as government bonds, corporate bonds, and debentures. The trading on these exchanges is done electronically through a computerized platform, where buyers and sellers place their orders on the exchange’s trading system. The exchange matches the buy and sell orders based on the price and other parameters, and executes the trades.

Screen-based trading offers several benefits over traditional trading methods, such as:

Transparency: Screen-based trading offers greater transparency as it provides real-time price information and trading data, which allows investors to make more informed trading decisions.

Efficiency: Screen-based trading is more efficient as it allows for faster execution of trades and reduces the time taken for settlement.

Accessibility: Screen-based trading allows investors to access the market from anywhere in the world as long as they have an internet connection.

Cost-effectiveness: Screen-based trading is more cost-effective as it eliminates the need for physical infrastructure and reduces the operational costs of the exchange.

The stock exchanges in India, under the overall supervision of the regulatory authority, the Securities and Exchange Board of India (SEBI), provide a trading platform, where buyers and sellers can meet to transact in securities. The trading platform provided by NSE is an electronic one and there is no need for buyers and sellers to meet at a physical location to trade. They can trade through the computerized trading screens available with the NSE trading members or the internet based trading facility provided by the trading members of NSE.